Which of the legislation do not from part of the legal environment of business in India?

A. The Drugs and Cosmetics Act, 1940

B. The prevention of Food Adulteration Act, 1954
C. The Monopolies and Restrictive Trade Practices Act, 1969
D. Both B and C

Consider the following statements. Which of these statements is/are true?

A. Socialism is compatible with democracy and liberty, whereas Communism involves creating an 'equal
society' through an authoritarian state
B. Totalitarianism is a form of government which involves complete submission of people to the
government. The State recognizes no limits to its authority and strives to control every aspect of public and
private life wherever feasible
C. India differed from core socialism as it went for a mixed economy rather than complete government
control
D. All of the above statements are true

"Repo Rate" refers to the rate at which

A. RBI borrows short-term money from the market
B. Banks keeps the money with RBI
C. Banks take money from RBI after offering some securities
D. Forex is purchased by RBI

Which of the following regional integration is similar to customs union but include the free movement of
factors of production as well as trade?
A. Preferential Trade Area
B. Custom Unions
C. Economic Union
D. Common Market

Which of the following is not the objective of the Competition Act, 2002?
A. Prohibition of restrictive trade practices
B. Prohibition of dominant position
C. Prohibition of anti-competitive agreements
D. Regulation of combinations

Which of the following in true?

A. A consumer court set-up under the consumer protection act, does not have the power to punish for its
contempt
B. Professional services are outside the purview of the CPA
C. A consumer court can not force a person indulging in misleading advertising to confess his quit
D. None of the above

The comparative cost advantage theory was given by

A. David Ricardo
B. Adam Smith
C. Raymond Vernon
D. Michael E. Porter

From the following, identify the tools of fiscal policy.

1. Public expenditure
2. Open market operations
3. Deficit financing
4. Taxation
5. Reserve requirements

Which among the following is not a correct sequential combination?

A. Macro Environment → Economic Environment → Na onal Income → Pa ern of Income Distribu on
B. Business Environment → Internal Environment → Business Ethics → Payment of Fair Wages
C. Business Environment → External Environment → Micro Environment → Suppliers
D. Macro Environment → External Environment → Customers → Prospects of Business Development

Which of the following is nor an instrument of monetary policy?

A. Deficit Financing
B. Statutory Liquidity Ratio
C. Cash Reserve Ratio
D. Open Market Operations

The companies globalize their operations through different means

A. Exporting directly
B. Licensing/Franchising
C. Joint ventures
D. All of the above

Which of the following is not a forum of Consumer Dispute Redressal System?

A. Local forum
B. District forum
C. State forum (State commission)
D. National commission

Which of the following is not the characteristic of capitalism?

A. Individuals and associations behave with economic motive of maximising their profit with least sacrifice
or cost
B. The country's major means of production are either owned by the government or their use is controlled
by the government
C. Producers, consumers and employees compete among themselves, as the resources and opportunities
are limited
D. Price, the invisible hand, plays a predominant role in the flow of the factors of production and
consumption

Which one is not an objective of IMF?

A. To promote international monetary cooperation
B. To ensure balanced international trade
C. To finance productive efforts according to peace-time requirement
D. To ensure exchange rate stability

Possible impact of WTO on various aspects of the Indian economy.

1. Quantitative restriction will be allowed.
2. Secondhand cars will be imported.
3. There will be dumping of Chinese goods.
4. Increase in population.
5. Child labour exploitation.
6. Unemployment will increase.
Which combination of the following is correct with regard to World Trade Organisation (WTO)?
1. WTO initiates peace process among the member countries to enhance international trade.
2. WTO avoids the task of 'Settlement of Disputes' among the member countries.
3. WTO administers the 'Trade Review Mechanism'.
4. WTO cooperates in an appropriate manner with the IMF and the World Bank.

The method being used for Transferring Complex Technology is known as:
A. Licensing Agreement
B. Transfer of Technology
C. Turnkey Contract
D. None of the above

The Competition Act, 2002 seeks to regulate

A. Anti-competitive agreements
B. Mergers and amalgamation
C. Unfair trade practices
D. Both A and B

Which one is not an international organisation?

A. SAARC
B. ASEM
C. ASEAN
D. CBDT

Statement I: WTO is only international organisation which deals with the rules of trade between
organisations.
Statement II: The limit of holding by individual foreign institutional investors in a company has been raised
from 5 to 10% of company's share while the aggregate limit has been increased from 24 to 34%.
A. Statement I is correct, but Statement II is incorrect
B. Statement II is correct, but Statement I is incorrect
C. Both the Statements I and II are correct
D. Both the Statements I and II are incorrect

The highest percentage of export from India went to which of the following regions in 2013-14?
A. OECD countries
B. USA
C. SAARC
D. Latin America

GOP at factor cost is:

A. P(Q) + P(S)
B. GDP - IT - S
C. GDP + DT + S
D. GDP - DT + S

Which one is not the form of FDI?

A. Purchases of existing assets in foreign currency
B. New investment in property, plant, equipment
C. Making investment in the mutual funds
D. Transfer of many types of assets

Franchising is a practice of
A. leasing for a prescribed period of time, the right to use firm's successful business model and brand
B. Selling out a successful business model and brand
C. Hiring a firm's successful business model and brand
D. None of the above

Which one of the following matches correspond to the member and observer countries of the SAARC?
1. India, Pakistan, Bangladesh, Bhutan, Nepal, Sri Lanka, Afghanistan, Maldive
2. Iran, China, Japan, USA, South Korea, European Union
3. Pakistan, Nepal, India, Bangladesh, Iran
4. UK, USA, North Korea, South Africa

Out of the following, which are the important objectives of IMF?

1. To promote exchange rate stability.
2. To create standby reserves.
3. To print international currency notes.
4. To establish a multilateral system of payments.
5. To maintain orderly exchange rate stability.
6. To create employment

In international trade, which of the following is a non-tariff tradebarrier?

A. Quotas
B. Import bans
C. Export controls
D. Anti-dumping laws

Indicate the ground on which a complaint under the Consumer Protection Act, 1936 shall be invalid?
A. A product having short weight
B. A service provided free of cost
C. A misleading advertisement given in newspaper
D. None of the above

Assertion (A): In 1991, government decided to allow all foreign investments to any industry without any
restrictions.
Reason (R): Government has enhanced the investment limit of small scale industrial units.
A. Both (A) and (R) are true and (R) is the correct explanation of (A)
B. Both (A) and (R) are true, but (R) is not the correct explanation of (A)
C. (A) is true, but (R) is false
D. (A) is false, but (R) is true

Which among the following is not an international economic institution?

A. IMF
B. IBRD
C. ADB
D. IFRS

The Foreign Investment Promotion Board (FIPB) revamps the rules and regulations pertaining to
A. Accounting of foreign investment
B. Investment by NRIs
C. Foreign investments
D. All of the above
The 'balance of payments' of a country is a systematic record of
A. All import and transactions of a during a given period normally a year
B. Goods exported from a country during a year
C. Economic transaction between the government of one country to another
D. Capital movements from one country to another

The basic objective of playing regulatory role by government is to:

A. Prevent the market structure from becoming monopolistic
B. Developing the small and new entrepreneurs
C. Promoting welfare of weaker sections of the society
D. All of the above

Match the items of List I with the items of List-II and select the correct answer:
List-I List-II
a. Rival firms 1. External environment
b. Technology 2. Social and cultural Environment
c. Improving quality 3. Internal environment
d. Ethics in business 4. Global environment

Which one of the following is not an element of internal environment?

A. Mission/Objectives
B. Human resources
C. Customers
D. Shareholders values

In which one of the following modes of entry into foreign market are risk and profit potential the highest?
A. Indirect exporting
B. Direct exporting
C. Direct investment
D. Joint venture

The companies having business in a large number of countries around the world at present are called
A. Transnational Corporations (TNCs)
B. Multinational Corporations (MNCs)
C. Global Corporations (GCs)
D. Multinational Enterprises (MNEs)

In respect of international business, a project is called a turnkey project because

A. The licensee agree to construct an entire plant in his home country and hands over the key
B. The licensor starts the operation and hands over the key of the operating plant to the licensee
C. The licensor starts the operation and then invites the licensee and hands over the key to complete the
remaining work
D. The licensor and the licensee jointly carry out the project and agree to share profit equally

The Flagship Project of Government of India launched for generating guaranteed employment in rural
areas is known as
A. PMRY
B. MNREGA
C. JRY
D. NREP
Both foreign direct investment (FDI) and foreign portfolio investment (FPI) are related to investment in a
country. Which of the following is incorrect regarding FDI and FPI?
A. Both FPI and FDI bring capital into the economy
B. FII invests in technology-oriented enterprises, whereas FPI invests in traditional business setups
C. The restrictions on the entry of FDI are lower than that on FPI
D. FDI is considered to be more stable than FPI. FPI can be withdrawn even at a short notice

If the currency of Rupee decreases against the US $, then what does it mean for the price of products of
that nation in foreign country?
A. The nation is now practically offering its products and services at a cheaper price in a foreign nation
B. The nation is now practically offering its products and services at a higher price in a foreign nation
C. It will no effect on the prices of the products
D. There is no link between two situations

Environmental degeneration does not consist of

A. land degeneration and soil erosion
B. Problem of overgrazing and ecological degeneration
C. Floods
D. None of the above

Uruguay Round pertains to

A. WTO
B. IMF
C. GATT
D. World Bank

The important objectives of WTO are

1. To improve the quality of technology in the member countries.
2. To improve the standard of living of people in the member countries.
3. To ensure full employment and broad increase in effective demand.
4. To enlarge production and trade of goods.
5. To increase trade of services.

Which of the following is not the main objective of 'Fiscal Policy of India'?
A. To increase liquidity in economy
B. To promote price stability
C. To minimise the inequality in income and wealth
D. To promote employment opportunities

Foreign investment can be made through which of the following routes?

1. Foreign Direct Investment (FDI)
2. Foreign Portfolio Investment (FPI)
3. Private Equity Investment (PEI)
4. Foreign Venture Capital Investors (FVCI)
Choose the correct answer
A. 1, 3 and 4
B. Both 1 and 4
C. 1, 2 and 4
D. All of the above
Which of the following are outside the scope of the Consumer Protection Act, 1986?
A. Newspaper industry
B. Services provided under contract of personal service
C. Banking industry
D. Both A and B

Statement I: Companies with low cash reserves normally prefer licensing mode rather than foreign direct
investment.
Statement II: Cash rich firms normally prefer foreign, direct investment.
A. Both statements are true
B. Both statements are false
C. Statement I is true, but Statement II is false
D. Statement I is not true, but Statement II is true

NAFTA came into force from January, 1994 embracing

A. USA, Canada, Cuba, Trinidad and Tobago
B. USA, Canada, Mexico
C. Cuba, Mexico, USA, Havana
D. Trinidad, The USA, Mexico

Match the items of List II and with the items of List I relating to WTO impact:
List-I List-II
a.
1. Liberalisation of international investments.
NAMA
2. Includes industrial goods, textile, jewellery, fish and fisheries product manufacturing
b. GADS
industries.
c. TRIMs 3. Liberalisation of trade in goods and services.
d. TRIPs 4. Provides monopoly power to owners of intellectual property

The theory suggesting that the patterns of international trade are determined by factor endowment rather
than productivity was propounded by which one of the following?
A. Adam Smith
B. David Ricardo
C. Heckscher and Bertil Ohlin
D. Michael Porter

Which of the following have been recognised under the intellectual property eligible for creation of rights
as per WTO mandate?
1. Computer software, music disc, performing art
2. Geographical indicator
3. Global positioning system
4. Journals, books, seeds, design, brand

Select the correct answer:

A. 1, 2 and 3
B. 1, 3 and 4
C. 1, 2 and 4
D. 1, 2 and 3
The current account of the balance of payments includes all of the following items except which one?
A. The inflow of capital investment by multinational companies
B. Exports of manufactured goods
C. Interest payments on overseas debts
D. Expenditure in a country by overseas visitors

Which one among the following has the largest share of exports from India?
A. Agriculture and allied commodity
B. Gems and jewellery
C. Handicrafts
D. Electronic goods

Which of the following is not the salient feature of the industrial policy developments since 1991?
A. The scope of the private sector has been enormously expanded
B. Public sector has been withdrawing partially or fully from several of the enterprises by divestment
C. The Indian industry is increasingly exposed to foreign competition
D. Monopoly or dominant position for public sector in most of the industries and control of the
commanding heights of the economy by the public sector

Match List-I with List-II and select the correct answer:

List-I List-II
a. Political and legal environment 1. Important for industries directly depending on imports or exports
b. Demographic environment 2. Close relationship with the economic system and economic policy
c. Economic environment 3. Related to natural resources
d. Geographical and ecological 4. Occupational and spatial mobilities of population having
environment implications for business

Consider the following statements in the context of Trade Related Investment Measures (TRIMs).
1. All restrictions on foreign capital companies are to be scrapped
2. No restriction will be imposed on any area of investment
3. Imports of raw material are to be allowed freely
4. Export of part of the output will be mandatory

Which of the above statements are correct?

A. 1, 3 and 4
B. 1, 2 and 3
C. 1, 2 and 4
D. 2, 3 and 4

Which one of the following is not the basic function of WTO?

A. To facilitate the implementation, administration and operation of trade agreements
B. To settle differences and disputes among its member countries
C. To facilitate the expansion and balanced growth of international trade
D. The carry out periodic reviews of the trade policies of its member countries

Out of the following which one is not related with WTO?

A. TRIPS
B. Ministerial conference
C. TRIMS
D. TRAI
Match List-I with List-II and select the correct answer:
List-I List-II
a. Fiscal policy 1. Mitigation of national hazards
b. Technology policy 2. Balance of payment
c. Macro-economic policy 3. Fiscal federalism
d. Monetary policy 4. Inflation

Which of the following statement/s is/are true in context of WTO?

A. The WTO is run by its member governments. All major decisions are made by the membership as a
whole
B. Some decisions are made by ministers who usually meet at least once every two years
C. Some decisions are made by their ambassadors or delegates who meet regularly in Geneva
D. All of the above

Which of the following pairs of GATT rounds and the associated years are correctly matched?
1. First Round ⇔ 1948
2. Kennedy Round ⇔ 1964-67
3. Tokyo Round ⇔ 1973-79

Which of the following is not ensured to the consumer in the globalization?

A. Lower prices
B. Better selection
C. Clear origin of goods and services
D. Improved service

In computation of balance of payments, overall balance of paymems is equal to

A. Balance of current account + Balance of capital account + Statistical discrepancy
B. Export of goods and invisibles - Import of goods
C. Foreign exchange inflow - Foreign exchange outflow
D. Export of goods and invisibles + Import of goods and invisibles

Match List-I with List-II and select the correct answer:

List-I List-II
a. Industries Development Regulation Act 1. 1947
b. Import and Export Control Act 2. 1948
c. Foreign Exchange Management Act 3. 1951
d. Factories Act 4. 1999

Consider the following statements.

Assertion (A): The 'Balance of Payments' presents a classified record of all receipts on account of goods
exported, services rendered and capital received by 'residents' and payments made by them on account of
goods imported and services received from capital transferred to 'non-residents' or 'foreigners'.
Reason (R): The 'Balance of Payments' of a country is a systematic record of all economic transactions
between the 'residents' of a country and the rest of the world.
A. Both (A) and (R) are correct and (R) is the right explanation of (A)
B. Both (A) and (R) are correct, but (R) is not the right explanation of (A)
C. (R) is correct, but (A) is not correct
D. Both (A) and (R) are incorrect
Match the items of List I with the items of List-II and choose the correct answer:
List-I List-II
a. Direct investment overseas aimed at manufacturing products not manufactured
1. Inward FDI
by the firm in the home country
b. Direct investment in a foreign country aimed to sell the output of the firm's 2. Backward Vertica
domestic production FDI
c. Direct investment overseas aimed at providing inputs for the firms production
3. Conglomerate FDI
process in the home country
4. Forward Vertical
d. Foreign firms investing overseas and taking control over foreign assets
FDI
Assertion (A): Comparative cost theory is static in character.
Reason (R): Comparative cost theory is based on fixed supplies of factors of production
A. (A) is correct, but (R) is incorrect
B. (R) is correct, but (A) is incorrect
C. Both (A) and (R) are correct, but (R) is not the correct explanation of (A)
D. Both (A) and (R) are correct and (R) is the correct explanation of (A)

Globalization is a term used to describe the process of removal of restrictions on which of the following?
A. Foreign Trade
B. Foreign Direct Investment
C. Flowof factors of production
D. All of the above

Strategies and policies

A. Are not closely related
B. Given direction
C. Are the framework for performance appraisal
D. Both A and B

The balance of payments of a country on Current Account is equal to:

A. Balance of trade plus short-term capital flows
B. Balance of trade plus net invisible exports
C. Balance of payments minus capital flows
D. Balance of invisible trade plus imports

Assertion (A): Amended Patent Act, in compliance with WTO, provides for grant of product patent as well
as a process patent for a period of 20 years from the date of application.
Reason (R): Under the Act, patent may be granted to an invention which means a new product or process
involving an inventive step and capable of industrial application, a technical advance over existing
knowledge.
A. Both A and R are true, but R is not the correct explanation of A
B. A is false, but R is true
C. Both A and R are true and R is the correct explanation of A
D. A is true, but R is false

Assertion (A): Operating style of the international business can be spread to the entire globe.
Reason (R): The style is limited to the internal economy only.
A. Both (A) and (R) are true and (R) is the correct explanation of (A)
B. Both (A) and (R) are true and (R) is not the correct explanation of (A)
C. (A) is true, but (R) is false
D. (A) is false, but (R) is true
The forces that lend momentum to the process of globalisation have been identified by Michael Porter
include the following
1. Fluid global capital market
2. Technological restructuring
3. Decreasing religious command
4. Ethnic decontrol
5. New global competitors
6. End of the cold war in 1990s

Match List-I with List-II and select the correct answer:

List I List II
a. Accommodating 1. Creation of international reserve assets by the IMF and their allocation among
capital flow member countries in order to improve international liquidity
b. Autonomous capital 2. Estimate of foreign exchange flow on account of either variations in the
flow collection of related figures or unrecorded illegal transactions of foreign exchange
3. Inflow of foreign exchange to meet the balance of payments deficit, normally
c. SDR Allocation
from the IMF
d. Statistical
4. Flow of loans/investments in normal course of business.
discrepancy

From the following modes of international business, identify the mode which involves strategic alliance.
A. Franchising
B. Leasing
C. Turnkey project
D. Joint venture

Which of the following is deemed to be a very important factor that provides competitive advantage to a
business organization?
A. Innovation
B. Modulation
C. Dimension
D. Variation

The components of WTO are

A. Ministerial conference
B. Disputes settlement body
C. Director General
D. All of these

Match the items of List I with List II and indicate the correct matching.
List-I List-II
a. Micro external
1. Economic and political factors
environment
b. Macro external 2. Competition among diverse products targetting disposable income of
environment consumers
c. Non-price competition 3. Input suppliers
d. Desire competition 4. Sponsoring of events like sports
Match items of List I with List II relating to macro environment of business and indicate the correct
matching.
List-I List-II
a. Economic environment 1. Ethical issues
b. Political and government 2. Trade and transport policies environment
c. Socio-cultural environment 3. Economic stratification of population
d. Demographic environment 4. Judiciary powers

Which one of the following is the main government agency responsible for development and monitoring
international trade in India?
A. Indian Institute of Foreign Trade
B. Federation of Indian Export Organisations
C. Department of Commerce
D. Export Promotion Council

Match the items of List I with the items of List-II and choose the correct answer:
List-I List-II
1. Imports and exports of goods and services and unilateral transfer of goods and
a. Balance of trade
services
b. Current account 2. Transactions leading to changes in the financial assets and liabilities of a country
c. Balance of 3. All economic transactions between a country's residents and residents of other
payments countries
d. Capital account 4. Value of exports and imports of a country

The apex consumer court in India is refered to as

A. The consumer education and research centre
B. The consumer unity and trust society
C. National consumer disputes redressal commission
D. None of the above

Which of the following is not the agency of World Bank?

A. MIGA
B. ICSID
C. ADB
D. IDA

Internal environment of a business includes

1. Business ethics and moral standards.
2. Business and managerial policies.
3. Prospects of business development.
4. Government rules and regulations.
5. Industrial relations.
Select the correct answer:

If a country has a floating (flexible) exchange rate, which one of the following would lead to a fall
(depreciation) in the rate of exchange for its currency into the economy?
A. A rise in capital inflows into the economy
B. An increase in the country's exports
C. An increase in the country's imports
D. A fall in the country's rate of inflation
Which of the following are sources of ethics?
1. Religion
2. Legal system
3. Economic system
4. Culture
5. Family system

Assertion (A): Internal factors of business environment are controllable factors.

Reason (R): The company can alter or modify such factors to suit the environment.
A. Both (A) and (R) are true
B. (A) is correct, but (R) is false
C. Both (A) and (R) are false
D. (A) is false, but (R) is true

In the context of globalisation, 'Levitt Thesis' means

A. Standardisation strategy to respond to the worldwide homogenised market and expand the market
through aggressive low pricing
B. Customise products to regional markets
C. Customise products to meet the national markets
D. None of the above

Which of the following can be referred as external factors affecting a business environment?
A. Controllable factors
B. Uncontrollable factors
C. Relevant factors
D. Global factors

Which one among the following is not a part of TRIPS agreement?

A. Industrial Design
B. Geographical Indications
C. Interior Design
D. Layout Designs of Integrated Circuits

When a company takes over another one and clearly becomes a new owner, the action is called
A. Merger
B. Acquisition
C. Strategic alliance
D. None of the above

Match List-I with List-II and select the correct answer:

List I List II
a. Supply side of international trade 1. David
b. Demand side of international trade 2. Bastable and Alfred Marshall
c. Opportunity cost international trade 3. G. Haberler
d. Real cost theory of international trade 4. Alfred Marshall and Edgeworth

Which one is not an element of internal environment?

A. Marketing capability
B. Operational capability
C. Money and capital market
D. Personnel capability
International trade is theoretically based on which principle?
A. Theory of comparative advantage
B. Theory of absolute advantage
C. Both A and B
D. None of the above

Consumer attitudes and beliefs about diet, health and nutrition are infuenced by
A. Economic environment
B. Cultural environment
C. Social environment
D. Natural environment

There is acute shortage of electricity in some of the states in India. This reflects a problem in which type of
business environment?
A. Economic
B. Demographic
C. Politico-legal
D. Socio-cultural

Examine the following statements and choose the correct answer:

Statement (I): Companies with Low cash reserves normally prefer Licensing mode rather than Foreign
Direct Investment.
Statement (II): Cash rich firms normally prefer Foreign Direct Investment.
A. Both (I) and (II) are correct
B. Both (I) and (II) are wrong
C. (I) is correct but (II) is wrong
D. (I) is not correct but (II) is correct

Bretton Woods Conference resulted into the establishment of which of the following?
A. IMF and IDA
B. IBRD and IFC
C. IDA and ADB
D. IMF and IBRD

Which of the following are the outcomes of the Sixth Ministerial Conference of WTO which was held at
Hong Kong in December 2005?
1. Resolve to complete the Doha Work Programme fully and to conclude negotiations in 2006.
2. Amendments to TRIPS agreement reaffirmed to address public health concerns of developing countries.
3. To continue export subsidies in agriculture upto 2018.
4. Duty free, quota free market access for all LDC's products to all developed countries.

Which one of the following is not correct relating to competition policy and law?
A. Collusion and dominance have potential for unfair competition
B. The appeal against decisions of competition commission of India can be made to the Competition
Appellate Tribunal
C. State monopolies, government's business policies and functioning of Regulatory Authorities cannot be
scrutinised under this law
D. Abuse of dominance rather than dominance should be the key for competition policy law

The major outcome of the Bretton Woods Conference was

A. Establishment of IMF and IFC
B. Establishment of IBRD and IFC
C. Establishment of IBRD and ADB
D. Establishment of IMF and IBRD

Match List-I with List-II and select the correct answer:

List-I List-II
a. Comparative cost theory of international trade 1. Gottfried Haberler
b. International trade theory of opportunity cost 2. J. S. Mill
c. Factor endownment theory of international trade 3. David Ricardo
d. Doctrine of reciprocal demand 4. Hecksher Ohlin

Assertion (A): Under FEMA, the receiver of laundered money is to be made culpable, instead of
sender/distributor.
Reason (R): FEMA differs from the earlier Exchange Regulation Act FERA with regard to penalties and
punishment in case of violation of the act.
A. (A) is correct, but (R) is not correct
B. Both (A) and (R) are correct, but (R) is not the correct explanation of (A)
C. Both (A) and (R) are correct and (R) is the correct explanation of (A)
D. Both A and R are incorrect

Match the items of List-I with the items of List-II and select the correct answer:
List I List II
a. Political and Legal Environment 1. Important for industries directly depending on imports or exports
b. Demographic Environment 2. Close relationship with the economic system and economic policy
c. Economic Environment 3. Related to natural resources
d. Geographical and Ecological 4. Occupational and spatial mobilities of population having
Environment implications for business

Consider the following statements.

Assertion (A): The industrial growth in India has been hampered by the burden of many controls and
regulations.
Reason (R): The New Industrial Policy seeks to liberate the industry from the shackles of Licensing System
A. Assertion (A) is correct, but Reason (R) is not correct
B. Assertion (A) is correct and Reason (R) is right explanation of (A)
C. Both Assertion (A) and Reason (R) are correct
D. Both Assertion (A) and Reason (R) are incorrect