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A company receives a government grant with a condition requiring domestic employment. Which political effect does this show?

Answer and explanation

Correct answer: A policy benefit accompanied by condition-based government control

The political environment includes government decisions, public policies, subsidies, grants, regulations, and the conditions attached to them. A grant is an incentive that can reduce a firm’s cost or support a business objective, but the employment condition shows that the government is also directing behaviour toward a public or national goal. Therefore, option A correctly identifies a policy benefit combined with condition-based control. Customer fashion belongs to the social or market environment, a natural risk belongs to the physical environment, and technological failure concerns the technological environment or internal operations. None of those distractors explains a grant whose eligibility or continuation depends on satisfying a government employment requirement.

Related tags

Business-EnvironmentPolitical-EnvironmentGovernment-PolicySubsidyPolitical EnvironmentBusiness EnvironmentBusiness StudiesClass 12 Mcq

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