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Which statement correctly identifies legal environment?

Answer and explanation

Correct answer: It is linked with laws, rules and Acts affecting business

The governing concept is the identification of legal environment as an external business factor. It includes the laws, rules, regulations, Acts, court requirements, and official directives that shape business decisions and activities. Hence, option A is correct because it accurately connects legal environment with formal requirements affecting business. Customer preference is mainly associated with the market or social environment, production technology belongs to the technological environment, and natural weather belongs to the physical or natural environment. The word “legal” is the decisive clue: the answer must refer to binding or authoritative rules rather than preferences, machinery, or climate. This distinction helps separate the dimensions of business environment.

Related tags

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

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