Final answer:
A business entity violating OSHA standards could face fines up to $70,000, depending on the violation's severity and circumstances. Financial deterrents like fines and pollution charges are tools used to enforce compliance and encourage safe and environmentally friendly business practices.
Step-by-step explanation:
If a business entity is found to be in violation of regulations such as those enforced by the Occupational Safety and Health Administration (OSHA), they could be subject to citations and fines. OSHA issues fines as a deterrent and to enforce compliance with safety standards. For serious violations, the maximum fine is $7,000, and for repeat or willful violations, the fine can go up to $70,000. Factors like the gravity of the violation, the size of the business, good faith effort to comply, and history of violations are considered while determining the fine amount. It is also worth noting that businesses have the right to contest citations, and workers can challenge remediation deadlines.
Similarly, environmental policies like pollution charges also aim to incentivize compliance and can induce firms to reduce their pollution levels. For instance, if a pollution charge of $1,000 is set, a firm might reduce pollution by 30 pounds if the cost of reduction ($900) is cheaper than paying the charge. This exemplifies how financial penalties and charges are used to encourage businesses to align with industry standards and regulations.