Question

Which of the following is an example of legal environment?

• A. Death/Birth Ratio
• B. Trade Union Act
• C. Prevailing Political System
• D. Public Debt

Answer 1

The Correct Option is B

In the context of a business studies subject, the "legal environment" refers to the framework of laws and regulations that impact how businesses operate within a jurisdiction. The question asks to identify which option exemplifies a legal environment factor. 

Let's analyze each option:

Death/Birth Ratio: This is a demographic statistic and relates to population studies. It does not involve legal requirements or regulations.

Trade Union Act: This is a legislative measure that regulates the formation, regulation, and functioning of trade unions. Since it is a law that explicitly influences business operations, worker rights, and employer-employee relationships, it is an example of a legal environment.

Prevailing Political System: This describes the form of government, such as democracy or authoritarianism, existing in a country. While it affects the business environment, it is more closely related to the political environment, not specifically the legal environment.

Public Debt: This relates to the financial obligations of a government. It is an economic indicator and does not pertain to the legal constraints or regulations affecting businesses directly.

Thus, the Trade Union Act is the correct example of a legal environment, as it directly involves laws impacting business operations.

Answer 2

The correct answer is indeed (2) Trade Union Act. Let's break down why this is the case and why the other options do not fit:

Analysis of Each Option

Death/Birth Ratio

Social Dimension: This is a demographic indicator that reflects the social and health conditions of a population. It is not directly related to the legal environment of business. It falls under the social dimension as it deals with societal trends and health statistics.

Trade Union Act

Legal Dimension: The Trade Union Act is a piece of legislation that governs the formation, operation, and rights of trade unions. It sets the legal framework for collective bargaining, worker representation, and labor rights. This is a clear example of the legal environment as it directly involves laws and regulations that affect business operations.

Prevailing Political System

Political Dimension: The political system of a country influences the legal environment but is not itself a legal regulation. It includes the structure of government, political parties, and the overall political climate. While it can impact business through policy changes, it is not a direct example of the legal environment.

Public Debt

Economic Dimension: Public debt refers to the total amount of money owed by the government to its creditors. It is an economic indicator that affects fiscal policy, interest rates, and overall economic stability. It falls under the economic dimension as it deals with financial and economic conditions.

The correct answer is: (2) Trade Union Act

This is because the Trade Union Act is a specific piece of legislation that directly affects the legal environment of business by regulating labor unions and their activities