Which of the following is an example of legal environment?

The correct option is Trade Union Act.

The business environment consists of several dimensions, namely the economic, social, technological, political, and legal environments. The legal environment encompasses all the laws, acts, legislative formulations, and administrative orders passed by the government authorities which businesses must comply with to operate legally within a nation.

Let us analyze each option to understand why the Trade Union Act fits this category:
• Trade Union Act: This is an official piece of legislation enacted by the government to govern and regulate the relations between employers and employees (or trade unions). Since it is a statutory law, it is a direct component of the legal environment.
• Death/Birth Ratio: This relates to population demographics, which represents the social environment.
• Prevailing Political System: This concerns the nature of government, political stability, and ruling party ideologies, representing the political environment.
• Public Debt: This is an economic factor concerning government finance, which belongs to the economic environment.