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Why should a business follow laws?

Answer and explanation

Correct answer: To avoid penalties and legal action

A business must comply with labour laws, consumer protection laws, tax rules and environmental regulations. Violations may result in fines, cancellation of licences or other legal action. Therefore, option B is correct. Changing the colour of machines is not a purpose of legal compliance. Exam tip: In questions on the legal environment, look for ideas such as compliance, penalties and legal action.

Related tags

Business EnvironmentLegal EnvironmentLegal ComplianceBusiness LawsClass 12Business StudiesClass 12 Mcq

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