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If a government builds broad political consensus on a long-term policy, what is its importance for business?

Answer and explanation

Correct answer: The possibility of policy reversal may decrease

Political consensus means that important groups or parties broadly support a policy, making abrupt opposition and reversal less likely. For business, this stability improves the predictability of regulations, taxation, incentives, infrastructure plans, and investment conditions. Firms can therefore make longer-term decisions with greater confidence, although consensus does not guarantee that a policy will never change. Option A is correct because it states a reduced possibility of reversal rather than an absolute promise. Consensus cannot end customer demand, make machines free, or control the weather, so B, C, and D are unrelated distractors. The relevant business benefit is greater policy continuity and reduced political uncertainty.

Related tags

Business-EnvironmentPolitical-EnvironmentPolicy-StabilityConsensusPolitical EnvironmentBusiness EnvironmentBusiness StudiesClass 12 Mcq

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