ENVIRONMENTAL
ANALYSIS (PEST)
PRACTICE 2026-
VERSION WITH
QUALIFIED QUESTIONS
AND VERIFIED
ANSWERS 100%
CORRECT.
POLITICAL FACTORS (1–70)
,1. Which of the following is a political
factor in environmental analysis?
A. Inflation rate
B. Government stability
C. Consumer income
D. Technology advancement
Answer: B
Rationale: Government stability is a
political condition affecting business
operations.
2. Tax policies mainly fall under which
category?
A. Social
B. Technological
C. Political
,D. Economic
Answer: C
Rationale: Tax policies are government
decisions influencing businesses.
3. Trade restrictions are an example of:
A. Social factor
B. Political factor
C. Technological factor
D. Cultural factor
Answer: B
Rationale: Trade restrictions are imposed
by governments.
, 4. Political risk refers to:
A. Market competition
B. Government instability affecting
business
C. Inflation changes
D. Consumer behavior
Answer: B
Rationale: Political risk arises from
unstable governance.
5. Which is NOT a political factor?
A. Tariffs
B. Laws
C. Exchange rates
D. Regulations
Answer: C
ANALYSIS (PEST)
PRACTICE 2026-
VERSION WITH
QUALIFIED QUESTIONS
AND VERIFIED
ANSWERS 100%
CORRECT.
POLITICAL FACTORS (1–70)
,1. Which of the following is a political
factor in environmental analysis?
A. Inflation rate
B. Government stability
C. Consumer income
D. Technology advancement
Answer: B
Rationale: Government stability is a
political condition affecting business
operations.
2. Tax policies mainly fall under which
category?
A. Social
B. Technological
C. Political
,D. Economic
Answer: C
Rationale: Tax policies are government
decisions influencing businesses.
3. Trade restrictions are an example of:
A. Social factor
B. Political factor
C. Technological factor
D. Cultural factor
Answer: B
Rationale: Trade restrictions are imposed
by governments.
, 4. Political risk refers to:
A. Market competition
B. Government instability affecting
business
C. Inflation changes
D. Consumer behavior
Answer: B
Rationale: Political risk arises from
unstable governance.
5. Which is NOT a political factor?
A. Tariffs
B. Laws
C. Exchange rates
D. Regulations
Answer: C
