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If new digital technology reduces distribution cost and speeds up customer service, what does it show?

Answer and explanation

Correct answer: A positive effect of the technological environment

The governing concept is the technological dimension of the business environment. It includes changes in tools, software, communication systems, production methods and digital infrastructure that influence business decisions and performance. In this case, technology lowers distribution cost and improves the speed of customer service, so it creates efficiency and may provide a competitive opportunity. Therefore option A is correct. Option B refers to the legal environment and would require a rule or punishment; option C concerns a physical or natural event, not a digital innovation; and option D ignores the measurable operational benefits described in the question. The example shows a favourable technological influence on business.

Related tags

Technological-EnvironmentBusiness-OpportunityCustomer-ServiceTechnological EnvironmentBusiness EnvironmentBusiness StudiesClass 12 Mcq

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