Theodore and Janice have formed TJ Soft, an entrepreneurial venture to develop games and other kinds of software for consumers.Theodore has just read an article that says that the low interest rates that currently prevail are likely to end in the coming months.Theodore thinks that TJ Soft may need to apply for a loan now to avoid high costs later.Which component of the external environment will affect TJ Soft the most in this situation?
A)the global component
B)the sociocultural component
C)the economic component
D)the technological component

Question

Quizplus · Accepted Answer

The economic component, specifically interest rates, is the factor that will affect TJ Soft the most in this situation. The potential increase in interest rates in the near future means that borrowing costs may rise, so Theodore's concern about applying for a loan now to avoid higher costs later is a response to the economic component of the external environment.

Theodore and Janice Have Formed TJ Soft, an Entrepreneurial Venture