A new law requires factories to install pollution-control equipment. This change mainly represents which environmental force?
Correct answer: C. Legal force
- A. Competitive force
- B. Demographic force
- C. Legal force
- D. Technological force
Explanation
A compulsory requirement created by legislation is a legal force in the business environment. The equipment may involve technology, but the immediate external pressure comes from the new law.
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About The Business Environment
Business environment includes the internal factors and external forces that affect business decisions, performance and survival. It covers customers, competitors, suppliers, government, technology, economic conditions, society, law and ecology, including the distinction between the microenvironment and the wider PESTLE environment.
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