Checking Your Knowledge

Question

Many states have appointed or elected commissions
that oversee the business practices of utilities and
other industries that serve the public interest. For a
company operating in one of these industries, dealing
with this important state-level regulatory commission is
an important element of the:
A. legal environment.
B. social environment.
C. monopoly environment.
D. technological environment.
E. corporate environment.

Answer 1

The correct answer is A. legal environment.

Dealing with state-level regulatory commissions involves understanding and complying with laws and regulations that govern business practices in industries such as utilities, making it a key aspect of the legal environment.