Question : Which of the following is an example of a legal environment?
Option 1: Death/Birth Ratio
Option 2: Trade Union Act
Option 3: Prevailing Political System
Option 4: Public Debt
Correct Answer: Trade Union Act
Solution :
The laws and regulations enacted by the government, such as the Trade Union Act and the Companies Act, comprise the legal environment. Business operations are governed and impacted by the laws, rules, and legal principles that make up the legal environment of business. Hence, the trade union is an example of a legal environment.