Question

Juan has many business ideas that could satisfy the unfulfilled needs of people who live in his community. However, there are laws that govern the type of businesses that private citizens can own and business taxes are high because the government subsidizes many social programs in his nation. In this case, challenges in the _________________ environment increase the risk of Juan starting a business.
a) competitive
b) social
c) technological
d) economic and legal

Answer 1

Answer:

d) economic and legal

Explanation:

As Juan is going to start a business by satisfying the unfulfilled needs of his community, it means definitely going to target a niche market, therefore chances of success are quite higher but as far as economic and legal factors are concerned, they surely either can increase the restrictions over him with the help of many possible laws and adding various taxes or can lower the risk of initiating a new venture by finding him a suitable financier who could finance his business effectively.