In the legal environment of a business, we are looking the key areas, particularly where law changes and how legal aspects affect businesses. All these legal factors are contained in the legal environment of a business.
The social environment of a business consists of all that a society believes, its customs, its practices and it’s the way it behaves. Largely, it is an artificial construct that can be clearly contrasted with the natural environment in which we have our livelihoods.
All businesses, whether domestic or international, are affected by the dynamic economic environment conditions prevalent in the market. Among the economic factors affecting business and these are; interest rates, demand and supply, recession, inflation, etc.