Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Business Environment

Question:

Impact of legal environment can be illustrated with the help of government regulations to protect.................

Options:

Employee satisfaction

Consumer protection

Business ethics

Product innovation

Correct Answer:

Consumer protection

Explanation:

The impact of legal environment can be illustrated with the help of government regulations to protect consumer’s interests. For example, the advertisement of alcoholic beverages is prohibited. Advertisements, including packets of cigarettes carry the statutory warning ‘Cigarette smoking is injurious to health’. Similarly, advertisements of baby food must necessarily inform the potential buyer that mothers milk is the best. All these regulations are required to be followed by advertisers.