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If a company publishes a false advertisement, it can become a problem related to which environment?

Answer and explanation

Correct answer: Legal environment

The governing concept is that the legal environment includes rules protecting consumers and regulating truthful business communication. A false advertisement may make an untrue claim about a product, hide an important condition or mislead buyers. Such conduct can violate advertising standards or consumer-protection laws and may expose the company to penalties, complaints, compensation claims or corrective action. Therefore option D, legal environment, is correct. The natural environment concerns resources and ecological conditions, not the truthfulness of promotional claims. The technological environment concerns methods, machines and innovation, while the social environment concerns values, customs and demographic behaviour. Those factors may influence advertising, but the direct problem created by a false claim is legal.

Related tags

Business-EnvironmentConsumer-ProtectionLegal-EnvironmentClass-12Legal EnvironmentBusiness EnvironmentBusiness StudiesClass 12 Mcq

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