Final answer:
The basic rules for how a business operates in society are set by the legal environment, which includes laws, societal arrangements, and the institutional structure of a society.
Step-by-step explanation:
The environment that sets the basic rules for how a business can operate in society is the legal environment. This encompasses the laws, morals, values, religious beliefs, customs, fashions, rituals, and all the cultural rules that govern social life.
The legal environment includes societal arrangements such as legislation, government regulations, the economic system, the institutional structure of society, and educational programs, all of which play a crucial role in determining the norms and behaviors businesses must adhere to within a society.