Question:medium

Read the following statements: Assertion (A) and Reason (R). Assertion (A): General forces such as social, political, legal and technological conditions affect an individual firm only indirectly. Reason (R): General forces have an impact on all business enterprises, in contrast to, specific forces that affect individual firms directly and immediately in their day-to-day working. Choose the correct alternative from the following:

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Remember: Specific forces = Direct impact (e.g., your investors). General forces = Indirect impact (e.g., national economy).
Updated On: Jun 25, 2026
  • Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).
  • Both Assertion (A) and Reason (R) are correct, but Reason (R) is not the correct explanation of Assertion (A).
  • Both Assertion (A) and Reason (R) are incorrect.
  • Assertion (A) is correct, but Reason (R) is incorrect.
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The Correct Option is A

Solution and Explanation

Step 1: Understand the format of the question.
This is an Assertion-Reason question. We need to check whether each statement is correct, and if both are correct, whether the Reason logically explains the Assertion.
Step 2: Evaluate Assertion (A).
Assertion (A) says: General forces such as social, political, legal and technological conditions affect an individual firm only indirectly. This is a well-established fact in business environment theory. General forces do not target a single firm; their impact is broad and indirect across all businesses. So, Assertion (A) is correct.
Step 3: Evaluate Reason (R).
Reason (R) says: General forces have an impact on all business enterprises, in contrast to specific forces that affect individual firms directly and immediately in their day-to-day working. This is also a textbook-accurate statement. General forces are economy-wide and industry-wide, while specific forces (like customers or suppliers) affect a particular firm's daily operations directly. So, Reason (R) is also correct.
Step 4: Check whether R explains A.
Assertion A says general forces affect a firm only indirectly. Reason R explains exactly why: because these forces act on all enterprises broadly rather than targeting any one firm directly. The broad, all-encompassing nature of general forces (stated in R) is the direct reason for why they only affect individual firms indirectly (stated in A). So R is the correct explanation of A.
Step 5: Match with the options.
Both A and R are correct, and R correctly explains A. This matches option (A).
Step 6: Conclude.
The relationship between specific and general forces is clear: the indirect nature of general forces on individual firms exists because these forces apply to every enterprise, not just one.
\[ \boxed{ \text{(A) Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).} } \]
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