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Government promotion of privatisation is a sign of which dimension of the business environment?

Answer and explanation

Correct answer: Political dimension

The correct answer is C, the political dimension. Privatisation means transferring ownership or control of an enterprise from the public sector to private owners, and its promotion reflects the government’s policy orientation and ideological approach toward economic management. Government decisions, public policies, political stability and the priorities of the ruling authorities form part of the political environment. Although privatisation can produce economic effects such as greater competition, efficiency or investment, the question asks about the dimension indicated by the government’s decision to promote it. A legal dimension would be identified by a statute or regulation, while a social dimension would involve values, lifestyles or demographic behaviour. Hence the policy signal is political.

Related tags

Business EnvironmentPolitical EnvironmentPrivatisationGovernment PolicyBusiness StudiesClass 12 Mcq

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