The government of Filvia has mandated that the standard minimum wage in the country be increased to $8,000 per year.This has ensured that all firms in the country pay their employees at least $8,000 per year, which has brought about a higher standard of living for the people of Filvia.Which of the following factors in a firm's general environment does this mandate best indicate?
A) Ecological factors
B) Sociocultural factors
C) Technological factors
D) Legal factors

Question

Quizplus · Accepted Answer

This mandate best indicates legal factors in a firm's general environment. The legal environment captures the official outcomes of political processes as manifested in laws, mandates, regulations, and court decisions-all of which can have a direct bearing on a firm's profit potential.

The Government of Filvia Has Mandated That the Standard Minimum