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If a company follows environmental rules but keeps no proof records, which risk will remain?

Answer and explanation

Correct answer: Risk of being unable to prove environmental compliance

Even if the company actually follows the rules, it may be unable to demonstrate that compliance during an inspection, audit, or legal dispute without records. Therefore, the remaining risk is the risk of being unable to prove environmental compliance. The risk of actual violation arises when the rules themselves are not followed. Exam tip: In legal compliance, documentation is as important as the compliance action itself.

Related tags

Business EnvironmentLegal EnvironmentEnvironmental ComplianceCompliance RecordsCorporate RegulationClass 12Business StudiesClass 12 Mcq

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