Answer:
The correct answer is D. The competitive environment.
Step-by-step explanation:
The competitive environment, also known as the market structure, is the dynamic system in which the company competes. The state of the system as a whole limits the flexibility of your business. Global economic conditions, for example, could increase raw material prices, forcing companies that supply their industry to charge more, raising their fixed costs. At the other end of the scale, local events, such as regional labor shortages or natural disasters also affect the competitive environment.