Correct Answer: Legal environment

Solution : The correct answer is (A) Legal environment

The legal environment refers to the system of laws, regulations, and legal frameworks that govern business activities and operations. It involves understanding and complying with laws related to contracts, intellectual property, employment, taxation, health and safety, environmental protection, consumer protection, and other legal aspects that impact businesses. The legal environment shapes the rules and guidelines that businesses must follow to ensure legal and ethical practices. Organizations need to navigate the legal environment to ensure compliance, mitigate legal risks, and protect their interests.