Read the following statements and choose your correct answer.
Assertion: Political factors plays an important role in shaping the environment in which a business operate.
Reasoning: Political stability builds up confidence among the businesses to invest in long term.
Answer & explanation
Correct answer: option 1
Both Assertion (A) and reasoning (R) are correct and R is the correct explanation of A.
Political factors do indeed play a crucial role in shaping the business environment, and political stability does contribute to building confidence among businesses for long-term investments.