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Progress in research and development is linked with which dimension of the business environment?

Answer and explanation

Correct answer: Technological dimension

The governing concept is the technological dimension of the business environment. Research and development, commonly called R&D, produces new knowledge, products, processes, machines, software, and methods of production. Progress in R&D can improve efficiency, create innovation, reduce costs, and change the way firms compete. These are characteristic effects of technological change, so option D, Technological dimension, is correct. The economic dimension may provide funds for research or reflect its financial results, but it is not the primary classification of R&D progress. The social dimension concerns society and consumer behaviour, while the legal dimension concerns laws and regulations such as patent protection. Patents may support R&D, but the research and innovation themselves belong to the technological environment.

Related tags

Business EnvironmentTechnological DimensionResearch And DevelopmentTechnological EnvironmentBusiness StudiesClass 12 Mcq

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