Which of the following is true about the economic forces in the external environment?
A) All economic forces affect all organizations equally.
B) In many service companies, such as consulting and law firms, the company's primary assets are its people.
C) Changes in the economy are usually temporary and are not long-term, structural changes.
D) Structural changes significantly affect the current and future dynamics of economic activity.

Question

Quizplus · Accepted Answer

Structural changes, such as recessions, changes in interest rates or inflation, globalization, and technological advancements, have significant impacts on the current and future dynamics of economic activity. These changes can lead to new opportunities for some companies while creating challenges for others. Therefore, it is important for organizations to closely monitor and react to these economic forces to remain competitive.

Option A is incorrect because economic forces affect different organizations differently depending on their industry, size, location, and other factors.

Option B may be true for some service companies, but it does not relate to the economic forces in the external environment.

Option C is incorrect because some changes in the economy, such as structural changes, may have long-lasting impacts on the economic environment.

Which of the Following Is True About the Economic Forces