Why is following legal rules important for an entrepreneur?
Answer and explanation
Correct answer: To keep the business safe and trustworthy
Legal compliance helps an enterprise operate within accepted standards, protect customers and workers, and avoid penalties, disputes, closure, or reputational damage. It also strengthens trust among stakeholders. Breaking or hiding rules creates legal and business risks, so keeping the business safe and trustworthy is the correct reason.
Frequently asked questions
What is the correct answer to this question?
To keep the business safe and trustworthy
Why is this the correct answer?
Legal compliance helps an enterprise operate within accepted standards, protect customers and workers, and avoid penalties, disputes, closure, or reputational damage. It also strengthens trust among stakeholders. Breaking or hiding rules creates legal and business risks, so keeping the business safe and trustworthy is the correct reason.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: MSME and Business Entrepreneurship. Topic: Entrepreneurship Development.
