Why is it important to understand legal rules and permissions while starting a venture?
Answer and explanation
Correct answer: So that the business runs safely and according to rules
Legal compliance helps an enterprise operate lawfully, protect customers and workers, and avoid penalties, forced closure, or loss of credibility. Permissions and safety requirements are part of responsible business planning. The other options describe dishonest or careless conduct, so A is the only valid reason.
Frequently asked questions
What is the correct answer to this question?
So that the business runs safely and according to rules
Why is this the correct answer?
Legal compliance helps an enterprise operate lawfully, protect customers and workers, and avoid penalties, forced closure, or loss of credibility. Permissions and safety requirements are part of responsible business planning. The other options describe dishonest or careless conduct, so A is the only valid 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.
