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A company believes that a government incentive was introduced mainly for popularity and may be removed after elections. What analysis does this require?

Answer and explanation

Correct answer: Policy durability analysis

A business should distinguish between a policy that is structurally supported for the long term and a temporary measure introduced for political popularity. If an incentive may disappear after an election, the company must examine its legal basis, funding, political support, stated duration, dependence on the current government, and likelihood of continuation under a new administration. This is policy durability analysis, so option B is correct. Customer age analysis may be useful for marketing but cannot assess whether a government programme will survive. Machine sound and seasonal colour have no meaningful connection with the stability of a public incentive. The central issue is political continuity and the risk of policy reversal.

Related tags

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

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