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Why should an entrepreneur know legal rules before starting a business?

Answer and explanation

Correct answer: To operate the business according to applicable regulations

Knowing the applicable legal rules helps an entrepreneur understand requirements such as registration, licences, taxes, safety, and duties to customers or employees. Following these rules helps reduce the risk of penalties and disputes. Thus, B is correct; legal awareness is not meant to frighten competitors or replace market research.

Related tags

Legal RulesRegulatory ComplianceIntroduction To EntrepreneurshipEntrepreneurial Skills IArtificial IntelligenceClass 9 Mcq

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