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Which decision may be affected when the government gives special status to agro processing industry?

Answer and explanation

Correct answer: Investment and expansion decision

The direct answer is C: investment and expansion decisions. Political environment means government laws, policies, priorities and support schemes that influence business. A special status for agro processing may provide concessions, easier approvals, subsidies, tax benefits or better access to facilities. Therefore a business may reconsider whether to invest more money, open a new unit, increase capacity or enter that industry. Option A, an employee’s favourite colour, is a personal preference unrelated to government policy. Option B, fan speed, is an internal and minor operating choice, not the main business decision indicated here. Option C is correct because investment and expansion depend on expected cost, benefit, risk and government support. Option D, choosing a company song, does not normally depend on industrial policy. The exam cue is: special status or government support usually affects investment, expansion and production decisions.

Related tags

Business-EnvironmentPolitical-EnvironmentClass-12Medium

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