What are potential risks to a business that fails to follow - ProProfs Discuss
Advertisement

What are potential risks to a business that fails to follow government regulations?

Asked by Greg.eppes, Last updated: Sep 16, 2021

+ Answer
Request
Question menu
Vote up Vote down

1 Answer

greg.eppes

greg.eppes

greg.eppes
Greg.eppes

Answered Sep 15, 2017

Fines, penalties, and bankruptcy

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.
upvote downvote
Reply 

Advertisement
Advertisement
Search for Google images Google Image Icon
Select a recommended image
Upload from your computer Loader
Image Preview
Search for Google images Google Image Icon
Select a recommended image
Upload from your computer Loader
Image Preview
Search for Google images Google Image Icon
Select a recommended image
Upload from your computer Loader

Email Sent
We have sent an email to your address "" with instructions to reset your password.