Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct? Assertion (A) Micro environment is also known as operating environment of business. Reason (R) Micro environment forces have a direct bearing on the operations of the firm. Codes

• A.  Both A and R are true and R is the correct explanation of A.
• B.  Both A and R are true, but R is not the correct explanation of A.
• C.  A is true, but R is false.
• D.  A is false, but R is true.