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Which option is a positive effect of political environment on business?

Answer and explanation

Correct answer: Government support for industries

The direct answer is option C, government support for industries. The political environment means the effect of government policies, decisions, laws, stability, and administrative support on business. When the government gives subsidies, facilities, incentives, loans, infrastructure, or other assistance to industries, businesses may reduce difficulty, expand production, invest more, and create employment. Therefore government support is a positive influence. Option A, sudden policy confusion, makes planning difficult and is negative. Option B, weakness in law and order, reduces safety and increases business risk, so it is negative. Option C, government support for industries, helps businesses grow and is the correct positive effect. Option D, frequent restrictions, limit business activity and create uncertainty, so it is not positive. The question asks specifically for a beneficial effect, not merely any political action. Memory cue: stable rules, safety, and support help business; confusion, violence, and restrictions usually harm it.

Related tags

Business-EnvironmentPolitical-EnvironmentClass-12Easy

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