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What should a business do when laws change?

Answer and explanation

Correct answer: Update its policies and procedures

Direct answer: Option A, update policies and procedures. Laws can change because of new public needs, court decisions, technology, or government decisions. When a law changes, a business should first learn the new requirement, compare it with its current practice, identify gaps, revise policies and procedures, train employees, and keep monitoring compliance. Therefore option A is correct. Option B, removing all customers, is not a normal legal response and would usually damage the business. Option C, stopping weather, is impossible and irrelevant. Option D, throwing away accounting records, may itself violate record-keeping duties and destroys useful evidence. Updating does not mean ignoring old records; it means changing future work while retaining records as required. The exact update depends on the law, but the general principle is adaptation to remain compliant. Memory cue: changed law → check, update, train, monitor.

Related tags

Business-EnvironmentLegal-EnvironmentClass-12Easy

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