Which can be a positive effect of political environment on business?

Correct answer: Clear policy and good law and order

The direct answer is option A, clear policy and good law and order. Political environment includes government policy, political stability, laws, administration, and public safety. Clear policies help businesses predict rules, prepare plans, and make investment decisions. Good law and order protect people, property, transport, contracts, and business operations. Together these conditions create confidence and support growth, so option A is positive. Option B, sudden restrictions, can interrupt production, sales, or expansion and is generally negative. Option C, political violence, creates danger, damage, uncertainty, and loss, so it harms business. Option D, continuous policy confusion, prevents reliable planning and discourages investment. Option A is not saying that every government policy is automatically good; it specifically describes clarity and safety, which reduce uncertainty. Memory cue: businesses prefer predictable rules and a safe environment; instability and confusion are warning signs.