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What benefit can a law-abiding company get?

Answer and explanation

Correct answer: Better trust and lower legal risk

Following laws and regulations improves a company’s credibility among customers, investors and government authorities, while reducing the likelihood of lawsuits, penalties and other legal risks. Compliance does not provide complete immunity from penalties; penalties may still apply if a violation occurs. Exam tip: In questions on the legal environment, link compliance with reputation, trust and lower legal risk.

Related tags

Business EnvironmentLegal EnvironmentLegal ComplianceCorporate CredibilityRegulatory RiskClass 12Business StudiesClass 12 Mcq

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