BUSINESS ADMINISTRATION
BUSINESS ENVIRONMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The two primary ways governments are involved in the organization of businesses are in legal requirements and taxation.
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True
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False
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Explanation:
Detailed explanation-1: -Governments provide the legal and social framework, maintain competition, provide public goods and services, redistribute income, correct for externalities, and stabilize the economy.
Detailed explanation-2: -Government regulation of firms uses the ‘coercive power’ of the state to alter firms’ pricing, entry, production, investment, and product choice decisions.
Detailed explanation-3: -The government most often directly influences organizations by establishing regulations, laws, and rules that dictate what organizations can and cannot do. To implement legislation, the government generally creates special agencies to monitor and control certain aspects of business activity.
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