Fines, penalties, and bankruptcy. When a business does not follow or comply with government regulations, it may experience negative consequences. The government might issue penalties or high fines for noncompliance. Noncompliance may result in a poor public image that lowers the businesss credibility with the public. Customers may stop buying from the business and start buying products from the businesss competitors, resulting in lower sales. Lower sales negatively affect the businesss financial health and may cause the business to file for bankruptcy. If the business is a corporation, noncompliance issues may negatively affect its stock values.
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