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Availability of bank credit is related to which dimension?

Answer and explanation

Correct answer: Economic dimension

The business environment has several dimensions, including economic, social, legal, technological and natural factors. Availability of bank credit concerns the supply of money and finance to businesses. Finance affects investment, production, working capital and expansion, so it belongs to the economic dimension. Therefore, option C is correct. Credit conditions can influence how easily a firm starts or grows its activities.

To apply the idea, ask what kind of external factor is being described. Bank loans are financial resources, and financial resources are part of the economy. Social factors concern customs and population patterns, legal factors concern rules, and technological factors concern methods and innovation. None of those directly identifies bank credit. Thus the phrase “availability of bank credit” should be connected with economic conditions, making option C the appropriate choice.

Related tags

Business-EnvironmentDimensionsEconomic

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