Which of the following are the major elements of the political environment?

A. Planned outlay in private & public sectors
B. Nature of relationship of our country with foreign countries
C. Population shifts
D. Money supply in the economy
E. The extent and nature of government intervention in business

Choose the correct answer from the options given below:

B and E only

The correct answer is Option (2) → B and E only.

A. Planned outlay in private & public sectors- Economic environment
B. Nature of relationship of our country with foreign countries- Political environment
C. Population shifts- Social environment
D. Money supply in the economy- Economic environment
E. The extent and nature of government intervention in business- Political environment

Political environment includes political conditions such as general stability and peace in the country and specific attitudes that elected government representatives hold towards business. The significance of political conditions in business success lies in the predictability of business activities under stable political conditions. On the other hand, there may be uncertainty of business activities due to political unrest and threats to law and order.

Major Elements of the Political Environment

* Prevailing political system
* The degree of politicisation of business and economic issues
* Dominant ideologies and values of major political parties
* The nature and profile of political leadership and thinking of political personalities
* The level of political morality
* Political institutions like the government and allied agencies
* Political ideology and practices of the ruling party
* The extent and nature of government intervention in business
* The nature of relationship of our country with foreign countries