An example of political costs is:
A) higher tax imposed on mining companies.
B) cost of implementing sound corporate governance arrangements.
C) having a debt covenant.
D) excessive consumption of perquisites.

Question

Quizplus · Accepted Answer

Imposing higher taxes on mining companies is a political decision that can have an impact on the industry's profitability and economic performance. This can lead to protests from affected companies, resulting in political costs for the government in power.

An Example of Political Costs Is