What is a potential consequence for anti-competitive behaviors as enforced by the CMA?

Prepare for the ACA ICAEW Tax Compliance Exam. Study with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

When considering the potential consequences for anti-competitive behaviors as enforced by the Competition and Markets Authority (CMA), adverse publicity associated with the company is a significant outcome. Engaging in anti-competitive practices, such as price-fixing or monopolistic conduct, can attract public scrutiny and media attention. This negative publicity can damage a company's reputation, impact customer trust, and result in a loss of business.

The focus of the CMA is to promote fair competition and protect consumers, so when companies are found to be breaching competition laws, the consequences often reflect a strong societal and market disapproval, which manifests as adverse publicity. This effect not only harms the company's public image but can also lead to changes in consumer behavior, decreased sales, and potential long-term financial impacts.

In contrast, other options like increased market share or reduction of corporate taxes do not directly correlate with the repercussions imposed by the CMA for anti-competitive behavior. Mandatory employee retraining programs, while they can be a response to other business issues, are not a standard consequence of CMA enforcement focused on competition and market behavior.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy