A company uses virtual reality headsets for training. This is an example of which environment?

Correct answer: Technological environment

The direct answer is option C: technological environment. A business environment includes outside forces that affect business decisions and working. Technology means tools, machines, software, scientific methods, and new ways of doing work. Virtual reality headsets are digital technological tools, and using them for employee training is therefore a technological influence or application. Option A, economic environment, concerns income, inflation, interest rates, production, and purchasing power; the example does not describe these. Option B, social environment, concerns customs, values, lifestyle, education, and population patterns; training with VR is not mainly a social trend. Option C fits because the central feature is use of modern digital equipment. Option D, political environment, concerns government, public policy, and political stability, none of which is mentioned. Exam cue: whenever the key idea is a new device, software, automation, or digital method, first consider technological environment.