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A company avoids unfair trade practices because of the Competition Act. This is an example of which dimension?

Answer and explanation

Correct answer: Legal dimension

The Competition Act is a law that regulates unfair trade practices and anti-competitive conduct. Therefore, the company’s conduct is influenced by the legal dimension of the business environment. The economic dimension concerns factors such as inflation, interest rates, and income, whereas the key factor here is a legal provision. Exam tip: When an Act, rule, or court order is mentioned, it usually indicates the legal dimension.

Related tags

Business EnvironmentLegal DimensionCompetition ActUnfair Trade PracticesClass 12 Business StudiesDimensions Of Business EnvironmentBusiness StudiesClass 12 Mcq

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