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If business laws are not followed, what may business face?

Answer and explanation

Correct answer: Penalty or legal action

The governing concept is the legal environment of business, which consists of laws, regulations, standards and procedures that firms must observe. If a business fails to follow applicable laws, authorities may impose a penalty, begin prosecution or other legal action, suspend a licence, or restrict operations. Therefore, option C is correct. The question is more specifically about legal compliance than about political attitudes or general political stability, so the legal-environment candidate is the best mapping. Options A and D have no logical connection with breaking business laws, and option B is a natural event rather than a legal consequence. Compliance helps protect both the firm and its stakeholders.

Related tags

Business-EnvironmentLegal-EnvironmentLegal-ComplianceBusiness-LawLegal EnvironmentBusiness EnvironmentBusiness StudiesClass 12 Mcq

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