Governments can raise or lower corporation tax , which will impact on profits. They can also affect businesses by increasing value-added tax on products or business rates. They can bring in new laws like the National Minimum Wage , which impacts on profits and employment rights.
What legal factors affect a business?
General examples of Legal Factors affecting business include:
- Consumer law.
- Discrimination law.
- Copyright law.
- Health and Safety law.
- Employment law.
- Fraud law.
- Pyramid scheme legality.
- Import/Export law.
What are the political factors that affect business?
Some common factors are political, economic, social and technological ( known as PEST analysis ). Companies also study environmental, legal, ethical and demographical factors. The political factors affecting business are often given a lot of importance.
How are political factors affect an organization’s environment?
Political factors can affect the organization in many ways. The various political factors can lead to creation of certain advantages and opportunities, as well as they lead to regulations and duties on the organization. • Legislation such as the minimum wage or anti-discrimination laws. • Market regulations.
What are legal factors that affect an organization?
Legal factors include discrimination law, consumer law, antitrust law, employment law, and health and safety law. These factors can affect how a company operates, its costs, and the demand for its products. The government legislation and policies have a direct impact on the performance of the organization.
What is the role of politics in business?
A cyclical political environment develops, as democratic governments have to pursue re-election every few years. This external element of business includes the effects of pressure groups. Pressure groups tend to change government policies. As political systems in different areas vary, the political impact differs.
