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If a company does not update its internal policy after law changes what is the risk?

Answer and explanation

Correct answer: Unintentional violation of new legal provisions

After a change in law, an old internal policy may no longer comply with the new legal provisions. Employees following the outdated procedure may therefore violate the law unintentionally, leading to penalties, legal action, or reputational damage. Improved product quality is not a direct consequence of failing to update a legal policy. Exam tip: Changes in the legal environment require businesses to revise their policies and procedures.

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Business EnvironmentLegal EnvironmentLegal ComplianceInternal PolicyClass 12 Business StudiesBusiness StudiesClass 12 Mcq

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