Why should legal rules be followed in business?
Answer and explanation
Correct answer: To run the business safely and properly
Legal compliance helps a business operate within accepted standards relating to registration, contracts, taxes, labour, safety, consumer protection, and the environment. It protects stakeholders and reduces the risk of penalties, disputes, closure, or loss of trust. Deliberately hiding records or cheating customers violates responsible business conduct. Thus, A gives the correct reason.
Frequently asked questions
What is the correct answer to this question?
To run the business safely and properly
Why is this the correct answer?
Legal compliance helps a business operate within accepted standards relating to registration, contracts, taxes, labour, safety, consumer protection, and the environment. It protects stakeholders and reduces the risk of penalties, disputes, closure, or loss of trust. Deliberately hiding records or cheating customers violates responsible business conduct. Thus, A gives the correct reason.
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.
