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What is the effect of administrative efficiency in political environment on business?

Answer and explanation

Correct answer: Permissions and services can become faster

Administrative efficiency means that government offices process applications, licences, registrations and public services accurately and promptly. In the political environment, this efficiency can reduce waiting time, uncertainty and transaction costs for enterprises. As a result, a firm may obtain a permission or service faster and begin or expand activity more smoothly, making option A correct. It does not manufacture products automatically, so B confuses administration with production. It cannot make demand always disappear, so C is economically unreasonable, and D has no necessary relationship with government administration. The effect is supportive and procedural, not automatic production or a guaranteed market outcome.

Related tags

Business-EnvironmentPolitical-EnvironmentAdministrative-EfficiencyPolitical EnvironmentBusiness EnvironmentBusiness StudiesClass 12 Mcq

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