Question

Q 21. Many Businesses today use Social Media
like Facebook and Twitter to promote their
company
This is an example of which dimension of
Business Environment. (a) Legal (b) Social (c)
Economic (d) Technological.​

Answer 1

Answer:

Explanation:

A) Legal Environment

It includes various laws passed by the government, administrative orders issued by government authorities, court judgments as well as decisions rendered by the central, state or local governments.

Understanding of legal knowledge is a pre-requisite for the smooth functioning of business and industry.

Understanding the legal environment by business houses help them not to fall in a legal tangle.

The legal environment includes various laws like Companies Act 2013, Consumer Protection Act 1986, Policies relating to licensing & approvals, Policies related to foreign trade etc.

Example: Labour laws followed by companies help them to keep away from penalties.