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What is the simple meaning of legal environment?

Answer and explanation

Correct answer: Laws and rules affecting business

The governing concept is the meaning of a dimension of the business environment. Legal environment refers to the collection of laws, rules, regulations, judicial requirements, and government directives that influence how a business is established, managed, financed, staffed, marketed, and closed. Therefore, option A is correct because it gives the essential meaning in simple terms: laws and rules affecting business. Customers’ festivals may relate to the social environment, machine speed may concern production or technology, and soil quality may concern a natural or physical environment. The decisive clue is the effect of formal legal requirements on business decisions and conduct.

Related tags

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

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