Correct Answer: Government policies and stability

Solution : The correct answer is (C) Government policies and stability

The political environment of business includes factors related to government policies, stability, and the influence of the government on business operations. It encompasses issues like government regulations, taxation, trade policies, political stability, and the impact of government decisions on the business environment. Economic conditions, social customs and beliefs, and technological advancements are typically categorized under the economic, social, and technological environments, respectively.