Question 1

[Section A] A commercial agricultural firm is analyzing its external environment using the PESTEL framework. The government has recently announced a new subsidy program for farms that transition to zero-emission electric tractors, while simultaneously introducing strict penalties for excessive groundwater extraction. Under which PESTEL categories do these two developments primarily fall?

Accepted Answer

Break down the scenario: Government subsidies = Political. Groundwater/Emissions = Environmental.

Question 2

What mistakes do candidates make on this ACCA question?

Accepted Answer

Classifying government subsidies purely as Economic. While they affect finances, the decision to grant them is a Political factor.

How to approach this question

Full Answer

Common mistakes

Practice the full ACCA BT — Business & Technology Practice Exam 2

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