When senior managers of a construction firm gather information to evaluate whether supply trends will have a significant effect on the cost of materials, they are contending with the nature of the business environment.

A. True

B. False

The correct answer is letter "A": True.

Explanation:

Managers are in constant search of maximizing profits and minimizing costs. While talking about larger entities where suppliers take a key role for the business, high-rank executives look for different entities from where their supplies can be obtained without affecting the quality of their output but minimizing the expenses of the firm. These activities are considered inherent for the business.