Theodore and Janice have formed TJ Soft, an entrepreneurial venture to develop games and other kinds of software for consumers.Theodore has just gotten wind from a highly reliable source that Congress is likely to take action in the coming year to ban violent games.TJ Soft has several games that could be considered violent.Which component of the external environment will affect TJ Soft the most in this situation?
A)the political/legal component
B)the demographic component
C)the technological component
D)the economic component

Question

Quizplus · Accepted Answer

The political/legal component, specifically the potential ban on violent games, will have the most significant impact on TJ Soft's business operations and profitability. This external factor is directly related to the legal and regulatory environment in which the company operates, and it could result in the loss of a significant portion of their product offerings. As a result, TJ Soft will need to rethink their product strategy and potentially pivot to offering non-violent games to protect their business in the face of impending legislative action.

Theodore and Janice Have Formed TJ Soft, an Entrepreneurial Venture