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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 4 · 25 questions

Practice questions

01In which situation will political environment change a company's supply security strategy?

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02Government increases the minimum investment limit in an industry. What is the most likely effect in expert analysis?

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03A company finds a clause in a government contract that payment can be withheld after policy change. Which risk should it plan for?

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04Which example shows political environment affecting product portfolio strategy?

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05If government treats a sector as highly socially sensitive what is the safest company policy?

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06Government added an industry to priority sector lending list but banks demand strict eligibility. What should the entrepreneur do?

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07Government reduced cash transaction limit and promoted digital records. What will be the main change for a wholesale business?

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08In which situation is changing market entry timing due to political environment most suitable?

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09If government stops exports to keep domestic prices stable what will be the exporter's key challenge?

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10Which statement correctly links political risk with reputation risk?

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11If government tightens timely payment law what is the combined effect on small suppliers and large buyers?

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12Government suddenly made licence renewal standards stricter in an industry. What is the first priority for business continuity?

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13If government applies a new product certification system and the rules also apply to old stock what is the toughest managerial question?

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14Which option gives the correct reason for difficulty in forecasting political environment?

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15Government promotes public private partnership model in a sector. What can be the expert opportunity for a construction company?

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16In which situation will political environment demand stronger risk diversification strategy from a company?

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17If government mandates indigenous procurement in a sector which strategic option should a multinational company consider?

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18In political environment one policy increases demand but also increases compliance cost. What is the best evaluation?

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19Which example shows that a company should add contractual protection due to political environment?

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20If political parties differ in ideology on industry control what should a company be prepared for after election results?

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21Which statement gives the most complete purpose of expert study of political environment?

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22If the government announces a policy benefiting an industry but its budget allocation is unclear, what risk should a company mainly assess?

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23A company enters a market where the government repeatedly changes rules retrospectively. What is the biggest expert-level effect?

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24If the central government permits an industry but local administration delays approval, this is an example of which political problem?

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25An industry was protected from foreign competition by government protection but failed to improve efficiency. What is the long-term threat?

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