Final answer:
Change orders can indeed arise from regulatory compliance, as businesses need to adapt to new or altered regulations. This is true for various industries, especially when environmental laws are updated, necessitating that companies adjust their production processes to meet new standards.
Step-by-step explanation:
The statement 'Change orders may arise from regulatory compliance' is True. Change orders are common in various businesses and industries, often as a result of adjustments needed to adhere to modified or new regulations.
For example, when environmental standards are enacted or altered, manufacturing firms may need to modify their production processes to comply with these regulatory compliance requirements. If environmental laws change due to political compromise or new scientific evidence, firms must adjust accordingly, which can lead to a change to update systems, processes, or products.
Stricter regulations not only affect existing companies but may also have different implications for new market entrants. Inflexible standardization of pollution-control technology by command-and-control regulation can also trigger the need for change orders as firms work to meet the same pollution standard, regardless of their circumstances.