Question : The legal environment of business includes factors related to:
Option 1: Social attitudes and customs
Option 2: Government regulations and laws
Option 3: Technological advancements
Option 4: Economic conditions
Correct Answer: Government regulations and laws
Solution : The correct answer is (B) Government regulations and laws
The legal environment of business includes factors related to government regulations, laws, and the legal framework within which businesses operate. This environment encompasses issues like contracts, intellectual property, labor laws, environmental regulations, and other legal factors that impact business operations. Social attitudes and customs, technological advancements, and economic conditions are typically categorized under the social, technological, and economic environments, respectively.
