Write a note on legal factors affecting business environment.

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answered Aug 29, 2022 by Vineshk (79.1k points)
selected Aug 29, 2022 by SayantaniGhosh

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Legal factors affecting business environment:

Acts approved by the Parliament and/or the Assembly which then become laws become the legal factors that affect the economy of the nation. Every business unit need to follow these acts.
In order to boost business as well as maintain social welfare, the government passes various laws.
Industrial Development and Regulation Act 1951, Essential Commodities Act 1955, Trade Mark Act 1969, Standard of Weights and Measures Act 1969, Consumer Protection Act 1986, etc. are few examples of trade related laws passed by the government.
As per the need of the hour, the government also amends the laws and at times removes the unnecessary laws. For example, when the government amended Monopolies and Restrictive Trade Practices (MRTP) Act 1951, several Indian companies could grow and make themselves at par with international companies.