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What result can a favourable political environment bring for business?

Answer and explanation

Correct answer: Higher chance of investment and growth

A favourable political environment is marked by stable government, predictable policies, effective administration, reasonable regulation and respect for lawful business activity. These conditions reduce uncertainty and risk, so domestic and foreign investors are more willing to commit capital. Businesses can plan for the long term, expand capacity and pursue growth; therefore option A is correct. A favourable environment does not mean every company closes, as stated in B. It also does not mean that rules disappear; clear and fairly applied rules are often valuable, so C is wrong. Customers do not automatically disappear, making D an opposite and unsupported claim.

Related tags

Business-EnvironmentPolitical-EnvironmentInvestment-GrowthPolitical EnvironmentBusiness EnvironmentBusiness StudiesClass 12 Mcq

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