Question : Which environment represents the regulatory framework within which businesses operate
Option 1: Political environment
Option 2: Social environment
Option 3: Technological environment
Option 4: Legal environment
Correct Answer: Legal environment
Solution : The correct answer is (D) Legal environment
The legal environment refers to the system of laws, regulations, and legal frameworks that govern business activities and operations. It includes laws related to contracts, intellectual property, employment, taxation, health and safety, environmental protection, consumer protection, and other legal aspects that businesses need to comply with. The legal environment sets the rules and guidelines that businesses must follow to ensure ethical and legal practices. Organizations must understand and adhere to the legal requirements and regulations applicable to their industry and jurisdiction to avoid legal risks and consequences.
Question : The economic environment of business refers to:
Option 1: The technological factors affecting business operations
Option 2: The social and cultural factors influencing business decisions
Option 3: The overall economic conditions, such as GDP growth and inflation rates
Option 4: The legal and regulatory framework within which businesses operate
Question : Which environment involves the study of the relationship between businesses and the community?
Option 1: Legal environment
Option 2: Political environment
Option 3: Social environment
Option 4: Technological environment
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