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financial management

 1. How a business person making a business decision analyze financial data?

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

 


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Answer #1

Every business has an obligation to follow all government regulations. If any one of the companies fails to follow the regulations, they have to face many potential risks such as fines and penalties. This will make a bad image about the company in public to lose their public image. Stock prices of the company will go down. And their customers may be the shift from their products and will buy the products of competitors. It will reduce the volume of sales of business, thereby the profitability of the business. And their financial health also is inversely affected by government actions. This will lead the company to file for bankruptcy. So it is better to follow the government than not following and facing such negative situations.

answered by: Dabberli
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