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Rural industries get support due to a government scheme. This is an example of which environment?

Answer and explanation

Correct answer: Political environment

The governing concept is the political environment, particularly government schemes and support programmes. A scheme introduced or implemented by the government can provide subsidies, credit, training, infrastructure, tax relief or market assistance to rural industries. Since the source of the support is a public policy decision, option B, political environment, is correct. Cultural environment concerns beliefs, customs and lifestyles; technological environment concerns technology, innovation and production methods; natural environment concerns land, climate and other physical conditions. Rural location alone does not make the example natural or cultural. The decisive clue is the government scheme that changes the business conditions faced by those industries.

Related tags

Business-EnvironmentPolitical-EnvironmentGovernment-SchemeRural-IndustryPolitical EnvironmentBusiness EnvironmentBusiness StudiesClass 12 Mcq

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