ExpertMedium2 marksMultiple Choice
ACCA · Question 02 · Syllabus A: The business organisation and its external environment
CloudNet Inc., a global data storage provider, is forced to restructure its server network due to a new government mandate requiring all citizen data to be stored on servers physically located within the country's borders. Under the PESTEL framework, which factor is primarily driving this change?
CloudNet Inc., a global data storage provider, is forced to restructure its server network due to a new government mandate requiring all citizen data to be stored on servers physically located within the country's borders. Under the PESTEL framework, which factor is primarily driving this change?
Answer options:
A.
Political
B.
Economic
C.
Technological
D.
Legal
How to approach this question
Identify the root cause of the change. Is it a market trend, a new invention, or a statutory requirement?
Full Answer
D.Legal✓ Correct
In PESTEL, Legal factors include specific laws, regulations, and statutory mandates (like GDPR or data localization laws) that organizations must legally comply with.
Common mistakes
Confusing Political and Legal. Political refers to government stability, policy direction, and taxation policy, whereas Legal refers to specific legislation.
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