Question:

The top management of a smartphone manufacturing company recently observed that the government has ordered new safety standards for batteries used in smartphones to prevent overheating. It also noticed that the government announced a reduction in import duties on components used in mobile phones. The dimensions of business environment highlighted in the above case are:

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Remember: Government orders or court rulings belong to the "Legal" environment, whereas government policy decisions and trade announcements belong to the "Political" environment.
Updated On: Jul 18, 2026
  • Technological and legal environments
  • Political and technological environments
  • Legal and social environments
  • Political and legal environments
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The Correct Option is D

Solution and Explanation

Step 1: Concept
Dimensions of the Business Environment.

Step 2: Meaning
The business environment consists of different forces—economic, social, technological, political, and legal—that affect a firm's performance and decision-making.

Step 3: Analysis

• The government ordering new safety standards represents the legal environment, as it involves passing laws or administrative orders that businesses must strictly obey.

• The government announcing a reduction in import duties represents the political environment, as it reflects the government's policy decisions and attitude towards the industry.


Step 4: Conclusion
Therefore, the specific events highlight the intersection of political decisions and legal frameworks.
Final Answer: (D)
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