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Why is following legal rules necessary for an entrepreneur?

Answer and explanation

Correct answer: To avoid penalties and maintain trust

Legal compliance helps an enterprise operate lawfully, protect customers and workers, and avoid penalties, closure, claims, or reputational damage. It also builds confidence among customers, suppliers, employees, and financial institutions. Compliance does not mean avoiding taxes illegally or misleading people; it means meeting applicable legal duties honestly and maintaining responsible business practices.

Related tags

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

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