Read the following passage and answer the question.

The governments all over the world are becoming more and more cautious towards the environment. To ensure it, many state governments passed an order to ban polythene bags since these are non-biodegradable. As a result, the government also decided to give a subsidy to jute industry (bags). The minister said in the statement that they believe it will be helpful as incomes of people are rising and people can afford jute bag. After this subsidy, Pooja saw great potential in jute multi-pocket bags business which was not established yet in India but had been flourishing in USA where she studied during her post graduation. She launched the product in India and her business started to boom. So, more companies entered into the market with other articles and improvisations in the country.

Which dimension of business environment is highlighted in the given lines?

"To ensure it, many state governments passed an order to ban polythene bags since these are non-biodegradable"?

Legal

The correct answer is option 4- Legal.

Legal dimension refers to the rules, regulations, and laws that govern how businesses operate. The specific text from the passage involves the government's decision to ban polythene bags because they are non-biodegradable. This action falls under the legal dimension as it involves 'Regulatory Compliance & Legal Requirements'. Businesses must adhere to laws and regulations set by the government. The ban on polythene bags requires companies to stop using these materials and comply with new environmental standards. The government imposes such restrictions to address environmental concerns. Such regulations can mandate businesses to find alternative materials, which in this case led to a rise in the demand for jute bags.