What encompasses the financial penalties for non-compliance in business practices?

The correct answer is sanctions because it encompasses a broader range of financial penalties and consequences that a business can face for non-compliance with laws and regulations. Sanctions can include fines, which are specific monetary penalties imposed for violations, but they can also refer to other punitive measures such as restrictions on business operations or the revocation of licenses.

While legal fees represent the costs incurred when a business engages in litigation or is involved in legal proceedings, and fines are a specific type of financial penalty, sanctions refer to a comprehensive set of regulatory actions that aim to enforce compliance and can involve various forms of penalties, not just financial ones. Costs, in general, do not specifically relate to penalties for non-compliance but rather refer to expenditures incurred in business operations. Therefore, sanctions effectively capture the complete scope of penalties that can arise from non-compliance.