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Internet speed improves in a city and demand for online services rises. This is the effect of which environment?

Answer and explanation

Correct answer: Technological environment

The governing concept is the technological dimension of the business environment. Technology includes communication networks, internet access, digital infrastructure, devices and improvements in the speed or quality of information transfer. When internet speed improves, online services become easier and faster to access; customers may therefore increase their demand for digital shopping, streaming, banking or other internet-based services. This change originates in the external technological conditions of the city, not inside one particular firm. Internal environment refers to factors such as employees or resources, and accounting environment is not a standard dimension here. Hence option A is correct.

Related tags

Business-EnvironmentTechnological-EnvironmentInternet-SpeedTechnological EnvironmentBusiness EnvironmentBusiness StudiesClass 12 Mcq

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