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Why is it important for an entrepreneur to follow legal rules?

Answer and explanation

Correct answer: It makes the business safer, more trustworthy, and lawful

Legal compliance means operating according to applicable requirements such as licences, taxes, labour rules, safety standards, and consumer protection provisions. It helps reduce penalties, disputes, and avoidable harm while strengthening the legitimacy and trustworthiness of the business. Compliance cannot eliminate every business risk or customer need, and it does not necessarily stop production. Therefore, option A is correct.

Related tags

Legal ComplianceBusiness EthicsRulesSocial Responsibilities Of Business And Business EthicsBusiness StudiesClass 11 Mcq

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