Question

Legal and Regulatory Forces

Answer 1

Sol:

1) In law, Force means unlawful violence, or lawful compulsion.

2) When something is said to have been done " by force " . it implies that it was done by actual or threatened violence, not necessarily by legal authority.

3) The Factors that shape for a business :

a) Legal Forces

b) Regulatory Forces

Legal Forces:

4) Legal force is the most important aspect for a business.

5) Forces in tne marketing environment that are shaped by government laws affecting business. These are very similar to political forces. Once these laws are enacted they are usually difficult to change.

6) Many companies work hard at lobbying legislatures , congress and other elected parties to pass laws favourable to the companies best interests.

Regulatory Forces:

7) Forces in the marketing environment that depend on various government regulatory agencies that impact how an organisation operates on a daily basis. An example is Federal Trade Commission (FTC) , which monitors advertising, deceptive labelling and false information. Agencies such as Food and Drug Administration (FDA).

8) Tax is one of the legal and regulatory forces that affect business.

9) Increase in the tax can affect business negatively because it reduces consumer spending and viceversa.

10) Finally , Legal and Regulatory forces plays a very crucial role in determining success of any businesses.