Why is legal compliance necessary for an entrepreneur?
Answer and explanation
Correct answer: Because it reduces the risk of penalties, disputes, and business closure
Legal compliance means following the laws and regulations applicable to the enterprise, such as registration, taxation, safety, and consumer requirements. It helps reduce penalties, disputes, and interruption of operations. Compliance does not remove the need for accounting, and rules are not limited only to large firms.
Frequently asked questions
What is the correct answer to this question?
Because it reduces the risk of penalties, disputes, and business closure
Why is this the correct answer?
Legal compliance means following the laws and regulations applicable to the enterprise, such as registration, taxation, safety, and consumer requirements. It helps reduce penalties, disputes, and interruption of operations. Compliance does not remove the need for accounting, and rules are not limited only to large firms.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: MSME and Business Entrepreneurship. Topic: Entrepreneurship Development.
