Which percentage of an organization’s global turnover may be imposed as a penalty for non-compliance?

Prepare for the ACA Business Law Exam. Test your skills with our engaging questions, complete with hints and explanations. Master your subject and achieve exam success!

The correct answer indicates that an organization can be penalized up to 4% of its global turnover for non-compliance with certain regulations, such as those outlined in data protection laws like the General Data Protection Regulation (GDPR). This percentage serves as a significant deterrent, ensuring that organizations take their compliance obligations seriously. The rationale behind imposing a percentage of global turnover is to ensure that penalties are proportionate to the size and financial capacity of the organization, which helps to reinforce accountability and encourage adherence to legal standards.

The choice of 4% is particularly notable as it is consistent with the penalties set forth under the GDPR, where organizations can face substantial fines that escalate in severity based on the nature of the violation. This framework is designed to promote compliance and protect the rights of individuals, preventing organizations from viewing non-compliance as a cost of doing business. Other figures presented in the options do not align with the established guidelines, underscoring the importance of precise knowledge about regulatory compliance and the implications of various penalties in business law.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy