Medium2 marksMultiple Choice
Business & TechnologyPESTELMacro-environmentSyllabus A

ACCA · Question 01 · Business & Technology

Section A

"AeroDrones Ltd" is a technology startup specializing in autonomous delivery drones. Recently, the national aviation authority introduced strict new airspace regulations requiring all commercial drones to be fitted with expensive transponders.

Under the PESTEL framework, which environmental factor does this primarily represent for AeroDrones Ltd?

Answer options:

A.

Technological

B.

Legal

C.

Political

D.

Economic

How to approach this question

Identify the core driver of the change. Although it involves technology (transponders), the driver is a 'regulation' mandated by an authority, which is a legal constraint.

Full Answer

B.Legal✓ Correct
The PESTEL framework analyzes Political, Economic, Social, Technological, Environmental, and Legal factors. Regulations, health and safety laws, and compliance mandates are classified as Legal factors.

Common mistakes

Students often choose 'Technological' because the scenario involves drones and transponders.

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