what is the main difference between political and legal environment..? iam very confused between these..
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Political Environment:
Political conditions such as peace and stability, law and order compose political business environment. It directly affects the functioning of enterprises. For example, a situation of political unrest erodes confidence of the investors and thereby, makes it difficult for the enterprises to function smoothly.
Legal Environment:
It comprises of the legislation and rules passed by the government such as the Companies Act, Trade union Act, etc. These legislation govern how an enterprise functions and behaves. Knowledge of these legislation is essential for enterprises as their non-compliance can lead to legal trouble for them.
Political conditions such as peace and stability, law and order compose political business environment. It directly affects the functioning of enterprises. For example, a situation of political unrest erodes confidence of the investors and thereby, makes it difficult for the enterprises to function smoothly.
Legal Environment:
It comprises of the legislation and rules passed by the government such as the Companies Act, Trade union Act, etc. These legislation govern how an enterprise functions and behaves. Knowledge of these legislation is essential for enterprises as their non-compliance can lead to legal trouble for them.
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