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A company studies political environment only during elections. What is the weakness of this approach?

Answer and explanation

Correct answer: Changes in policies, regulations and administrative decisions can occur between elections too

The political environment is not limited to elections. Governments may change budgets, taxes, business regulations, licensing requirements, labour laws and administrative procedures at any time. Therefore, studying it only during elections can prevent a company from identifying important changes in time. Option C may be useful for understanding possible policy directions, but election manifestos are only one part of the political environment. Exam tip: Treat the political environment as a dynamic external factor that requires continuous monitoring.

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Business EnvironmentPolitical EnvironmentGovernment PolicyExternal EnvironmentClass 12Business StudiesClass 12 Mcq

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