Administrative orders of the Government are the main element of............... environment.
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Legal
Option (1) Economic — Incorrect. The economic environment covers things like interest rates, inflation, incomes and the stock market.
Option (2) Legal — Correct. The legal environment includes the laws passed by the government, administrative orders issued by government authorities, court judgements and the decisions of various commissions and agencies at the centre, state and local levels. Every business must obey these.
Option (3) Political — Incorrect. The political environment covers political stability and peace in the country and the attitude of elected leaders towards business.
Option (4) Social — Incorrect. The social environment covers customs, traditions, values and lifestyles of people.
NCERT (2026-27 Edition): “Legal Environment … (v) Legal Environment: Legal environment includes various legislations passed by the Government administrative orders issued by government authorities, court judgments as well as the decisions rendered by various commissions and agencies at every level of the government— centre, state or local. …” |