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If the government imposes more control on industries, what should business do?

Answer and explanation

Correct answer: It should understand and follow the rules

The governing concept is the business response to the political and regulatory environment. If the government increases control over an industry, the firm must first identify the applicable laws, licences, standards, reporting duties and operating restrictions. It should then establish procedures and records to comply with them. Option A is correct because lawful compliance protects the business from fines, cancellation of licences, disruption and legal action, while also supporting responsible operations. The other options do not address regulation: stopping communication with customers is unnecessary, discarding machines is not a normal response, and deleting accounts would itself be improper and could violate record-keeping requirements.

Related tags

Business-EnvironmentPolitical-EnvironmentLegal-ComplianceClass-12Political EnvironmentBusiness EnvironmentBusiness StudiesClass 12 Mcq

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