Question

‘With the election of a new government the Sensex drops by 748 points’. Identify the dimensions of business environment:

Options

• Social environment

• Legal environment

• Political environment

• Economic environment

Answer 1

Political environment

Explanation:

• The election of a new government is a political event.
• Changes in government or political leadership often influence investor sentiment and stock markets like the Sensex.
• Such political changes create uncertainty or expectation about government policies, which affects the economic and business climate, reflected in stock market fluctuations.