Why should an entrepreneur follow legal rules?
Answer and explanation
Correct answer: To keep the business safe and lawful
Legal rules establish the required standards for operating a business, such as proper registration, taxation, safety, employment, and consumer protection. Following them helps the entrepreneur maintain lawful operations, protect stakeholders, and reduce the possibility of penalties, disputes, or closure. Thus, option A is correct. Seeking punishment, frightening customers, or avoiding receipts represents non-compliance, not responsible entrepreneurship.
Frequently asked questions
What is the correct answer to this question?
To keep the business safe and lawful
Why is this the correct answer?
Legal rules establish the required standards for operating a business, such as proper registration, taxation, safety, employment, and consumer protection. Following them helps the entrepreneur maintain lawful operations, protect stakeholders, and reduce the possibility of penalties, disputes, or closure. Thus, option A is correct. Seeking punishment, frightening customers, or avoiding receipts represents non-compliance, not responsible entrepreneurship.
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.
