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Business deals became safer because contract enforcement rules became stronger. Which dimension is related?

Answer and explanation

Correct answer: Legal dimension

The governing concept is the legal dimension of the business environment. This dimension consists of laws, regulations, courts, enforcement mechanisms and compliance requirements that define the rights and duties of businesses and other parties. Stronger contract-enforcement rules make it more likely that promises in an agreement will be upheld and that a party can seek a remedy when the agreement is breached. Therefore, the described improvement in business security belongs to the legal dimension, so option C is correct. Economic conditions concern income, inflation or interest rates; social conditions concern culture and population; technological conditions concern innovation and production tools.

Related tags

Legal EnvironmentContract EnforcementBusiness RegulationLegal EnvironmentBusiness EnvironmentBusiness StudiesClass 12 Mcq

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