Why is following legal rules important for an entrepreneur?
Answer and explanation
Correct answer: To keep the business safe and trustworthy
Legal compliance helps a business operate within the accepted framework and protects it from avoidable penalties, disputes, and loss of confidence. It also supports fair treatment of customers, employees, and other stakeholders. Penalties, cheating, and closure are not purposes of compliance. Thus following applicable rules contributes to a safer and more trustworthy business.
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 a business operate within the accepted framework and protects it from avoidable penalties, disputes, and loss of confidence. It also supports fair treatment of customers, employees, and other stakeholders. Penalties, cheating, and closure are not purposes of compliance. Thus following applicable rules contributes to a safer and more trustworthy business.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: MSME and Business Entrepreneurship. Topic: Entrepreneurship Development.
