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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.

Medium · Level 6 · 25 questions

Practice questions

01Which example shows the effect of international political relations on trade?

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02What is a possible result when government reduces controls in an industry?

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03If the government imposes more reporting rules on an industry, what will be the effect on a company?

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04In which situation can political environment affect marketing strategy?

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05Which capability of companies can improve due to government rural road construction?

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06If political parties mention industry support in their manifestos, what should business do?

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07In which situation will a company's supply strategy change due to a political decision?

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08If the government creates an online grievance redressal system for business, which aspect will improve?

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09In which situation can political environment affect a company's brand image?

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10What future benefit can arise if the government starts an entrepreneurship training scheme?

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11Which option shows a direct operational impact of political environment on business?

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12If the government promotes privatisation, what change may occur in the market?

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13In which situation will legal compliance risk increase for business due to political environment?

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14If the government gives export support to the handicraft industry, what decision can companies take?

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15What is the correct preparation by a company to reduce policy risk in political environment?

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16If the government reduces electricity subsidy, what will be the effect on an energy-intensive industry?

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17Which example shows political environment affecting a company's location selection plan?

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18In which situation can a political decision affect a company's customer price?

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19If the government allows foreign companies in a sector, what should domestic companies prepare for?

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20What should a food business do if the government increases food safety inspections?

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21Which example shows political environment affecting industry demand?

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22If the government increases the validity period of business permits, what relief can business get?

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23In which situation can political environment affect a company's cash flow?

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24What benefit can companies get if the government develops a trade corridor in a border region?

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25If the government applies price control, which company strategy may be affected?

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