Why should an entrepreneur follow laws and rules?
Answer and explanation
Correct answer: To run the business safely, responsibly, and properly
Laws and regulations establish basic requirements for areas such as contracts, taxation, employment, consumer protection, safety, and the environment. Compliance helps an entrepreneur operate legitimately, protect stakeholders, reduce penalties and disputes, and maintain public trust. Following the law does not guarantee that every business decision will succeed, but it is a necessary part of responsible business conduct. Hence, option A is correct.
Frequently asked questions
What is the correct answer to this question?
To run the business safely, responsibly, and properly
Why is this the correct answer?
Laws and regulations establish basic requirements for areas such as contracts, taxation, employment, consumer protection, safety, and the environment. Compliance helps an entrepreneur operate legitimately, protect stakeholders, reduce penalties and disputes, and maintain public trust. Following the law does not guarantee that every business decision will succeed, but it is a necessary part of responsible business conduct. Hence, 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.
