Question : Which environment involves the study of the relationship between businesses and the government?
Option 1: Legal environment
Option 2: Political environment
Option 3: Social environment
Option 4: Economic environment
Correct Answer: Political environment
Solution : The correct answer is (B) Political environment
The political environment involves the study of the relationship between businesses and the government. It encompasses factors related to government policies, regulations, political stability, and the influence of government decisions on business operations. Understanding the political environment is crucial for businesses to navigate regulatory and policy challenges and make informed strategic decisions.
