How a business is influenced by a political and legal environment?

The business environment consists of political and legal barriers that affect the activities of the business organization. Political and legal environment means a certain set of rules and regulations that are rigid, and a business organization has to follow in order to establish its business organization. These rules and regulations are developed by the government and judiciary of the country, and a business organization must abide by these rules. If the organization fails to obey the land rules, it may have to face consequences such as the dissolution of the business firm or may have to pay heavy fines.

So, a business organization must study all the country's political and legal factors before establishing its business.