Politics can increase Furniture company’s risk factors, because governments can quickly change business rules that negatively affect Furniture company’s business… … "Political Risk (Furniture company)" has a significant impact, so an analyst should put more weight into it. This statements will have a short-term negative impact on this entity, which subtracts from its value. This qualitative factor will lead to an increase in costs. This statement will lead to a decrease in profits. "Political Risk (Furniture company)" is an easy qualitative factor to overcome, so the investment will not have to spend much time trying to overcome this issue.