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In which situation can a company's licence be cancelled?

Answer and explanation

Correct answer: On repeated serious violations of regulations

A regulatory authority may cancel a company’s licence when it repeatedly commits serious legal or regulatory violations. Issuing correct bills, paying taxes on time, and following safety rules are examples of compliance, not grounds for cancellation. Exam tip: Associate licence cancellation with serious non-compliance with legal requirements.

Related tags

Business EnvironmentLegal EnvironmentLicence CancellationRegulatory ComplianceClass 12Business StudiesClass 12 Mcq

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