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What is the legal environment mainly related to?

Answer and explanation

Correct answer: Laws and rules made by the government

The governing concept is the legal dimension of the business environment. It consists of the laws, rules, regulations, court decisions and government requirements that guide or restrict business activities. Therefore option A is correct because laws and rules made by the government directly define what a business may or may not do, how it must operate, and what duties it owes to employees, consumers and the state. A customer’s personal choice belongs mainly to the social or consumer side of the environment. Weather conditions are part of the natural environment, while the speed of new machines belongs to the technological environment. These distractors may affect business indirectly, but they do not define the legal environment.

Related tags

Business-EnvironmentLegal-EnvironmentClass-12Legal EnvironmentBusiness EnvironmentBusiness StudiesClass 12 Mcq

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