Question

---------- environment is influenced by economic policies of the government.
a) Economic
b) Social
c) Demographic
d) Political

Answer 1

Answer:

Social environment is concerned with the characteristics of the society in which the organisation or enterprise exists. Economic environment is concerned with economic policy of the government and the economic system prevailing in the country.

Explanation:

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Answer 2

Political environment is influenced by the economic policies of the government.

• The state, government, and its institutions and legislation, who operate, interact with, or affect the system, make up the political environment.
• For a company to succeed, the political environment must be favourable and stable. A country's political climate is the foundation for its commercial environment.
• Government policies that are stable and better will have a favourable influence on companies, and vice versa. Changes in government frequently result in policy changes.
• For example: The government can change the economic policy of taxation, foreign exchanges as per the requirements.