Legal factors must be considered when performing an analysis of a firm's external environment. Common factors include the ease with which regulations can change, the cost of regulatory compliance, and ________.
A) whether the firm's practices violate existing codes
B) the cost of upgrades to the firm's equipment
C) the cost of building permits for new factories and buildings
D) the height restrictions on buildings in the area

Question

Quizplus · Accepted Answer

The ease with which regulations can change and the cost of regulatory compliance are common legal factors to consider. Violating existing codes may result in legal action, fines, or other penalties, making it an important factor to consider but not necessarily a common one. Choices B, C, and D relate more to governmental regulations and building codes rather than legal factors.

Legal Factors Must Be Considered When Performing an Analysis of a Firm's