If the government exempts an industry from taking a licence, what effect will it have on business?

Correct answer: Starting business can become easier

The answer is option A, starting a business can become easier. A licence is an official permission or approval required for some activities. If the government removes that requirement for an industry, an entrepreneur may face fewer forms, lower delay, lower compliance cost, and a simpler entry process, subject to other applicable laws. Option A is correct because removing a licence barrier can make starting easier. Option B, business will always close, is the opposite of the likely effect and is too absolute. Option C, customer demand will end, does not follow; licensing rules do not automatically remove demand. Option D, machines will stop automatically, is unrelated to permission requirements. Licence exemption does not guarantee success, profit, or customers; it only reduces one regulatory barrier. Memory cue: fewer entry rules generally mean easier entry, not guaranteed business success.