Update

Muft Shiksha™ एक 100% Free Education Portal है 🇮🇳, जिसका उद्देश्य Class 9–12 के हर विद्यार्थी तक High-Quality Education को पूरी तरह मुफ्त पहुँचाना है। 🇮🇳 हम मानते हैं कि अच्छी शिक्षा किसी student की आर्थिक स्थिति पर निर्भर नहीं होनी चाहिए। 🇮🇳 हर विद्यार्थी को वही Quality Study Material, MCQs, Quizzes, Exam Preparation, Concept-Based Learning और Bilingual Support मिलना चाहिए, जो आमतौर पर महंगी Coaching या Premium Platforms में मिलता है। Muft Shiksha™ 🇮🇳 इसी सोच के साथ बनाया गया है

Subjects

Business Studies

Political environment

In Class 12 Business Studies, Political Environment is studied as an important dimension of the Business Environment. Students learn how government policies, political stability, ideology, administrative decisions and changes in laws can influence business operations and growth. The topic explains why businesses must monitor decisions related to taxation, trade, licensing, public expenditure and regulation, and adapt their plans to changing political conditions while recognising their responsibilities towards society and the economy.

Expert · Level 1 · 25 questions

Practice questions

01If a company starts a long-term project due to stable tax policy and later the government applies tax retrospectively, what is the main political risk?

0 reads0 helpful★ – (0)

Answer and explanation

02The central government permits an industry but the state government stops land approval. Which political complexity does this show?

0 reads0 helpful★ – (0)

Answer and explanation

03If the government gives preference only to certified domestic suppliers in public procurement, what should be the expert response of a foreign supplier?

0 reads0 helpful★ – (0)

Answer and explanation

04A company gets contracts due to closeness with political parties but contracts become risky after government change. Which threat does this show?

0 reads0 helpful★ – (0)

Answer and explanation

05In which situation can political environment artificially increase entry barriers in a market?

0 reads0 helpful★ – (0)

Answer and explanation

06If the government announces a policy but local administration does not implement it, what problem will business face?

0 reads0 helpful★ – (0)

Answer and explanation

07A company invests in a country where the government frequently uses power to seize private property. This is a high example of which risk?

0 reads0 helpful★ – (0)

Answer and explanation

08If the government suddenly forces an industry to sell at lower prices for a social objective, what will be the main impact on a company?

0 reads0 helpful★ – (0)

Answer and explanation

09If government suddenly changes the head of a regulatory body, what will a company reassess?

0 reads0 helpful★ – (0)

Answer and explanation

10If due to political pressure a regulator applies strict rules only to some companies, this is an example of which problem?

0 reads0 helpful★ – (0)

Answer and explanation

11A company sees benefit due to a government policy but the policy also has an expiry date. What should the company focus on?

0 reads0 helpful★ – (0)

Answer and explanation

12If government orders data sharing in public interest but company customers are concerned about privacy, what is the main balance?

0 reads0 helpful★ – (0)

Answer and explanation

13In which situation can political environment divert a company's research direction away from market demand?

0 reads0 helpful★ – (0)

Answer and explanation

14If the government makes the approval process digital but officials still have high discretion, what risk remains?

0 reads0 helpful★ – (0)

Answer and explanation

15A company invests in a politically risky country and adds an international arbitration clause in the contract. This is an example of what?

0 reads0 helpful★ – (0)

Answer and explanation

16If government allows a foreign company to enter the market on the condition of technology sharing, what will be the main strategic concern?

0 reads0 helpful★ – (0)

Answer and explanation

17A government gives incentives to an industry but also imposes strict local employment conditions. What dual effect is this?

0 reads0 helpful★ – (0)

Answer and explanation

18If government reduces industry grants due to fiscal stress, what strategy will a grant-dependent company need?

0 reads0 helpful★ – (0)

Answer and explanation

19A company operates in a sector where community and political support are needed for local approval. What will it prioritise?

0 reads0 helpful★ – (0)

Answer and explanation

20In which situation will political environment push a company toward building a domestic supply chain?

0 reads0 helpful★ – (0)

Answer and explanation

21If the government gives very slow decisions in investor disputes, what will be the effect on investors?

0 reads0 helpful★ – (0)

Answer and explanation

22Which example shows political environment changing the rules of competition?

0 reads0 helpful★ – (0)

Answer and explanation

23A company gives legal suggestions before policy making through an industry association. This is an example of which legitimate political activity?

0 reads0 helpful★ – (0)

Answer and explanation

24If government does not consult industry before making rules, what risk increases for companies?

0 reads0 helpful★ – (0)

Answer and explanation

25A company has less freedom to set prices in a government project but demand is assured. Which political business trade-off does this show?

0 reads0 helpful★ – (0)

Answer and explanation

Add Muft Shiksha to your Home Screen

In Safari, tap Share, then Add to Home Screen.