ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Governments establish many policies that guide businesses. The government can make changes in fiscal policy which leads to changes in taxes, trade, subsidies, regulations, interest rates, licencing and more. Businesses should be flexible enough to respond to changing rules and policies.

Detailed explanation-2: -No, A government employee is not allowed to run a private business, neither is he allowed to work anywhere else as a part-time or full-time employee. This is against government rule and hence person who is found can be charged for breaking the law.

Detailed explanation-3: -Business Registration After deciding on the business name and office location, you need to register your business for it to be legally recognised. You can choose any one of the following business structures for establishing your business: Sole proprietorship firm. Partnership firm.

Detailed explanation-4: -Corporations offer the strongest protection to its owners from personal liability, but the cost to form a corporation is higher than other structures. Corporations also require more extensive record-keeping, operational processes, and reporting.