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Why is government's attitude towards business important in political environment?

Answer and explanation

Correct answer: Because it can create policies of encouragement or control

The government’s attitude toward business shows whether it is likely to support, regulate, restrict, or control business activities. This attitude is important because government decisions can create opportunities for firms, such as incentives and support, or create difficulties through controls, restrictions, and additional requirements. Thus, political conditions directly affect business planning and operations.

Option A correctly states that the government can make policies of encouragement or control. Customer taste belongs mainly to the social or consumer environment, machine speed belongs to technology, and rainfall belongs to the natural environment. Therefore, option A best explains why the government’s attitude is important in the political environment.

Related tags

Business-EnvironmentPolitical-EnvironmentClass-12Easy

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