Marina, a garments manufacturing company, signed a contract with Tertch Tex, a textile company, to receive 2 million pounds of yarn at a rate of $2 per pound. However, Tertch Tex hikes up the price to $5 per pound just before the day of delivery. Marina files a lawsuit against Tertch Tex for breaking an enforceable contract and receives $100 million in compensation. In this context, which dimension of the business environment is affected the most?
A) The economic environment
B) The technological environment
C) The social environment
D) The political environment

Question

Quizplus · Accepted Answer

The economic environment is affected the most as it involves the financial aspects of the business, including pricing and contracts. The breach of contract and subsequent lawsuit directly impact the economic dealings between the two companies.

Marina, a Garments Manufacturing Company, Signed a Contract with Tertch