Legal Environment being referred to here... The causes are given below
It includes various laws passed by the government, administrative orders issued by government authorities, court judgments as well as decisions rendered by the central, state or local governments.
Understanding of legal knowledge is a pre-requisite for the smooth functioning of business and industry.
Understanding the legal environment by business houses help them not to fall in a legal tangle.
The legal environment includes various laws like Companies Act 2013, Consumer Protection Act 1986, Policies relating to licensing & approvals, Policies related to foreign trade etc.