BUSINESS ADMINISTRATION
BUSINESS ENVIRONMENT
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Directly
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Indirectly
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No influence
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None of these
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Detailed explanation-1: -Governments can raise or lower corporation tax, which will impact on profits. They can also affect businesses by increasing value-added tax on products or business rates. They can bring in new laws like the National Minimum Wage, which impacts on profits and employment rights.
Detailed explanation-2: -Political Factors Affecting Business Environment Political factors can impact a business by making the market environment more or less friendly for that business. Typically, governments have a great deal of power over businesses and many times, there is not much that businesses can do about it.
Detailed explanation-3: -Political stability refers to the state of a government being peaceful and steady. Businesses can only thrive in environments that provide political stability. The absence of it through a riot or hostile takeover can disrupt everyday business transactions.
Detailed explanation-4: -In fact, political stability is a key part of government efforts to attract foreign investment to their country. Businesses need to assess if a country believes in free markets, government control, or heavy intervention (often to the benefit of a few) in industry.