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Which statement shows the impact of political environment?

Answer and explanation

Correct answer: Government announced a new subsidy for industry

The governing concept is the political dimension of the business environment. Political decisions include government policies, subsidies, taxation, public expenditure, permissions and other measures that can influence firms. Option C is correct because a subsidy is an explicit government decision that can reduce costs, improve viability or encourage investment in a particular industry. Option A primarily illustrates the technological environment because a machine changes production capability. Option B reflects the social or cultural environment because fashion is linked to consumer preferences. Option D belongs to the natural environment. Thus, the government’s announced subsidy is the clearest political impact among the four choices.

Related tags

Business-EnvironmentPolitical-EnvironmentGovernment-SubsidyClass-12Political EnvironmentBusiness EnvironmentBusiness StudiesClass 12 Mcq

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