Question : Which of the following is a component of the competitive environment?
Option 1: Suppliers
Option 2: Customers
Option 3: Economic conditions
Option 4: Technological advancements
Correct Answer: Suppliers
Solution : The correct answer is (A) Suppliers
Suppliers are a component of the competitive environment. The competitive environment includes entities and factors that directly impact a company's competitiveness and its ability to serve its customers. Suppliers are one of these entities as they provide the resources and materials necessary for a business to produce its goods or services, and they can influence a company's cost structure and product availability. While customers, economic conditions, and technological advancements are important factors, they are typically considered elements of the broader business environment rather than the competitive environment.
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