Which of the Following Is NOT One of the Principal

question 79

Multiple Choice

Which of the following is NOT one of the principal components of strategic significance in the PESTEL analysis?

• A) political factors including the extent to which government intervenes in the economy
• B) economic conditions that include the general economic climate and specific factors such as interest rates, inflation rate, and unemployment rate, as well as conditions in the stock and bond markets that can affect consumer confidence
• C) sociocultural forces including societal values, attitudes, cultural factors, and lifestyles that impact business
• D) technological factors that include the pace of change and technical developments that have the potential for impacting society
• E) environmental forces that include the competitive structure, the degree of industry fragmentation, and the mobility barriers that inhibit business

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Definitions:

Joint Arrangements

Agreements between two or more parties that establish joint control over economic activities.

Tax Purposes

Refers to reasons or activities related to the calculation and payment of taxes.

Investments

Assets purchased with the expectation that they will generate income or appreciate in the future.

Subsidiaries

Companies that are controlled by another company, known as the parent company, through ownership of more than 50% of the subsidiary's voting stock.