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Price control by the government will be considered part of which environment?

Answer and explanation

Correct answer: Political environment

The governing concept is that the political environment includes government actions, public policies, administrative decisions and the attitude of authorities toward business. Price control is not a natural, family or cultural force; it is a deliberate government measure that regulates how firms may set or charge prices. Therefore, option B, political environment, is correct. The economic effect may include changes in revenue, supply or demand, but the source of the decision remains political and governmental. Option A concerns physical conditions, option C concerns family relations, and option D concerns values and traditions, so none of them explains a statutory price-control decision.

Related tags

Business-EnvironmentPolitical-EnvironmentClass-12Political EnvironmentBusiness EnvironmentBusiness StudiesClass 12 Mcq

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