ACCA Applied Knowledge · Business and Technology · Political and legal factors affecting business
Which of the following is an example of a legal factor, rather than a purely political factor, affecting a business?
A law setting minimum product safety standards is a legal factor because it is legislation the business must comply with. Changes in government and spending priorities are political factors, even though they may eventually lead to new laws.
- AA change in the party in government after an election
- BA law setting minimum product safety standards for consumer goodsCorrect
- CA government's decision to support a particular industry through its spending priorities
Explanation
Product safety standards are legislation that the business must comply with, so they are legal factors. Election outcomes and spending priorities are political choices, although they may later lead to law.
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