Question

What are the potential consequences if a business does not follow regulations?

Answer 1

Failing to meet all state and federal guidelines for compliance can result in serious consequences for your business. Along with altering your company’s legal status, which may leave you vulnerable to lawsuits, government agencies may conduct audits, enact fines or even dissolve your business entirely.

Answer 2

If a company fails to follow or comply with government regulations, the government may issue penalties for non-compliance or high fines. Non-compliance will lead to a poor image of the public which reduces the reputation of the company with the public. The company's share prices may be adversely affected by the non-compliance matter.