The Government of India has recently come up with an amendment to Section 6 of the Payment of Wages Act 1936, to allow employers of certain industries to make payment through various electronics modes of payments. The amendment will be applicable to all the public sector undertakings for wages disbursement using epayment options. This is another milestone in the direction to further push to cashless economy.
Identify and explain any two dimensions of business environment which relate to the above mentioned case.
Answers
Political Environment and Legal Environment
Explanation:
The two dimensions of business environment which relate to the above mentioned case are stated below:
1. Political Environment-. It includes political conditions such as peace in country and general stability. The significance of political conditions in a business success lies in the predictability of business activities under stable political conditions. It helps in building confidence among business people to invest in long-term projects.
2. Legal Environment - It includes the legislations summoned by the government authorities and courts. It is mandatory for the management of every business enterprise to obey the Law of the Land. Thus, an adequate knowledge of rules and regulations framed by the government and its authorities is a pre-requisite for better business performance.
Also, there is one more dimension of business environment which is related to the above mentioned case is Technological Environment.