Regulatory authorities impact businesses in various ways:
Compliance Costs: Businesses must invest in systems and processes to adhere to regulations, which can be expensive. Operational Changes: Companies often need to modify their operations to comply with new regulations. Fines and Penalties: Non-compliance can result in hefty fines and legal actions, damaging a business's reputation. Market Entry: Regulations can act as barriers to entry, affecting new businesses' ability to enter the market.