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How can the political environment affect business?

Answer and explanation

Correct answer: सकारात्मक या नकारात्मक दोनों

The governing concept is the political dimension of the business environment. Government decisions, political stability, taxation priorities, trade rules, licensing systems, and public policies can create opportunities or impose constraints on enterprises. For example, a supportive policy may encourage investment, while sudden restrictions or uncertainty may raise costs and reduce confidence. Therefore, the effect can be both positive and negative, making option B correct. Option A is too narrow because politics can also create barriers. Option C ignores the strong dependence of business on public decisions, and option D is unrelated to the meaning of a business environment.

Related tags

Business-EnvironmentPolitical-EnvironmentGovernment-PolicyPolitical EnvironmentBusiness EnvironmentBusiness StudiesClass 12 Mcq

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