Question

Kenneth Chenault, CEO of American Express Co., hopes to issue American Express cards through U.S. banks. At present, banks that own Visa and MasterCard are not allowed to issue other types of creditcards. However, the Supreme Court may rule that Visa and MasterCard stifle competition and innovation by preventing banks that own these two cards from issuing competitive cards. Which of the following environmental forces would have the most impact on Chenault's decision to issue cardsthrough U.S. banks? A) Economic environmentB) Technological environmentC) Competitive environmentD) Legal environment

Answer 1

D) Legal environment

Step-by-step explanation:

Base on the scenario been described in the question, the type of environmental forces would have the most impact on Chenault's decision to issue cardsthrough is legal environment

Legal environment is the laws that are passed by the government for business operation. All every country, the government of the country regulates business activities of the country . These regulations been done by government are said to be legal environment.

Answer 2

D) Legal environment

Step-by-step explanation:

-The Economic environment refers to the economic factors that can affect a business like inflation and interest rates.

-The technological environment refers to knowledge, techniques and tools available that can provide oportunities or threats for a company.

-The competitive environment refers to the external environment in which a company participates.

-Legal environment refers to the laws that the government establish to regulate the market.

According to this, the answer is that the environmental force that would have the most impact on Chenault's decision to issue cards through U.S. banks is the legal environment because the main problem is that banks that own Visa and MasterCard are not allowed to issue other types of credit cards and if the Supreme Court rule that Visa and MasterCard stifle competition and innovation, American Express might be able to issue its cards through U.S. banks.