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A company changed working hours and overtime payment according to a new labour law. This is the effect of which dimension?

Answer and explanation

Correct answer: Legal dimension

The governing concept is legal compliance in the business environment. Labour laws prescribe conditions such as working hours, overtime compensation, leave, safety and other employment obligations. Because the company changed its policy in response to a new labour law, the immediate external cause is legal, so option C is correct. The change may influence operating costs, which could be an economic consequence, but that is not the dimension identified by the stated cause. Option B would involve social expectations or workforce attitudes, and option D would involve machinery, software or production methods. The reference to a specific law makes the classification clear.

Related tags

Legal EnvironmentLabour LawOvertimeBusiness EnvironmentBusiness StudiesClass 12 Mcq

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