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Why is following legal rules important in business?

Answer and explanation

Correct answer: To run the enterprise safely and legally

Legal compliance means meeting applicable requirements such as registrations, licences, taxes, safety standards, and consumer-protection rules. It allows the enterprise to operate lawfully, protects stakeholders, and reduces the risk of penalties, closure, disputes, or loss of reputation. Breaking rules or hiding obligations may create short-term claims of benefit but is not responsible business. Thus, A is correct.

Related tags

Legal-ComplianceResponsibilityBusiness-EthicsBusiness EthicsSocial Responsibilities Of Business And Business EthicsBusiness StudiesClass 11 Mcq

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