ExpertMedium2 marksMultiple Choice
ACCA · Question 02 · The business organisation and its external environment
AstroMine Inc. is a commercial space exploration company preparing to extract rare earth metals from near-Earth asteroids. The United Nations is currently drafting a new treaty that will heavily tax off-world resource extraction to fund global climate initiatives. Under which category of the PESTEL framework does this specific development primarily fall?
AstroMine Inc. is a commercial space exploration company preparing to extract rare earth metals from near-Earth asteroids. The United Nations is currently drafting a new treaty that will heavily tax off-world resource extraction to fund global climate initiatives. Under which category of the PESTEL framework does this specific development primarily fall?
Answer options:
A.
Political
B.
Economic
C.
Legal
D.
Environmental
How to approach this question
Analyze the core nature of the constraint. A 'treaty' that mandates a 'tax' is a legislative/legal framework that the company must comply with.
Full Answer
C.Legal✓ Correct
In PESTEL, new treaties, legislation, and statutory taxation rules are classified as Legal factors, as they represent binding frameworks the organization must operate within.
Common mistakes
Choosing Environmental because the funds are for climate, or Political because it's the UN. Always focus on the direct mechanism affecting the firm.
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