Goverment involvment
What federal agency prevents unfair buisness practices
FTC
name one negative effect of government regulations
Limites resources, slows down innovations, can divert resources
What are the two main ways the gov regulates business
Regulatory laws and agencies
How did the governments intervention in business become important during the 20th century
It became important because of social movemnts, industrialization, and social movements wanting more protection for workers,consumers and the enviroment
What is licensing
Licensing is a business arrangement in which one company gives another company permission to manufacture its product for a payment
what role did the the government play in making sure there was fair competion
prevent unfair methods of competion
Name one postive effect of government regulation
prevent unfair practices, allowing buisinesses to compete fairly, Regulates prices.
How does licensing regulate business plans and operations
Ensures business follow laws and regulations from safety laws to tax laws
What are some historical events that led to an increase in government regulation
The industrial revolution, great depression, social movements
Why is licensing important
What were the orginanal intentions of the goverments involvemnets in business
To protect business property enforce business contracts and to collect taxes.
How does governemt pay for the costs of regulating businesses
taxes businesses in different ways and when this is not sufficient enough the government borrow money
what are price and wage controls and how do they affect the economy
price-wage controls manage economic crises and protect consumers from fast price increases and they affect the economy by creating a fair and stable market
How has the governments role in buisness change over time
It changed from a small amount of interference in early economies to very active regulation in modern times to adress economic and enviromental issues
How to license a product