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.
Frequently asked questions
What is the correct answer to this question?
It makes the business safer, more trustworthy, and lawful
Why is this the correct answer?
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.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: Social Responsibilities of Business and Business Ethics. Topic: Business Ethics.
