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Introduction to Business Ch 9: Government in Our Economy.

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Presentation on theme: "Introduction to Business Ch 9: Government in Our Economy."— Presentation transcript:

1 Introduction to Business Ch 9: Government in Our Economy

2 Our Government Main Purpose of Federal Government – Oversee the activities that involve two or more states or other countries – Constitution gives the federal government the power to regulate foreign and interstate commerce – Interstate Commerce – Business transactions involving companies in more than one state

3 Our Government Main Purpose of State Government – Regulate business activities within their own boundaries – Intrastate commerce – Business transactions involving companies that do business only in one state

4 Our Government Main Purpose of Local Government – Provide services needed for an orderly society Ex – Police and Fire Department

5 Government Protects How does the government protect our rights? – Police and Fire Departments – Armed Forces – Laws for safe work environment Safety standards for building, machines, and chemicals – OSHA (Occupational Safety and Health Administration)

6 Government Protects How does the government protect our rights? – Protect the basic human rights of workers Cannot be denied work because of you race, religion, sex, or age. Selection must be based on job requirements, training, and experience

7 Government Protects How does the government protect our rights? – Protect air, water, noise, and chemical pollution EPA (Environmental Protection Agency)

8 Government Protects How does the government protect our rights? – Contracts and Special Property Rights Patents, Copyrights, and Trademarks – Protect inventions and ideas that might profit for a company in the future

9 Contracts Contract – An agreement to exchange goods or services for something of value – May be written or unwritten Must include: – Agreement – An offer must be made and an acceptance must occur. – Competent Parties – Those entering into the contract must be of legal age and must be mentally competent – Consideration – Something of measureable value must be exchanged – Legality – Must be for a product or service that may be legally sold

10 Intellectual Property Rights Intellectual Property – Property that is purely intangible that a person cannot touch – Patents Gives that inventor the exclusive right to make, use, or sell the item for 17 years Prevents other companies from making or selling a product that your company has created.

11 Intellectual Property Rights Copyrights – Protects the creative works of authors, composers, and artists – Protection continues for the life of the person receiving the copyright and for 50 years after the persons death. –©–©

12 Intellectual Property Rights Trademark – Word, letter, or symbol associated with a specific company or product – Company names, team emblems, or label designs may be registered with the government Logo – Symbol identified throughout the world TM – Unregistered Registered Last forever

13 Government Regulates Public Utilities – Organization that supplies a service or product vital to all people – Water, Electric, Gas, Telephone – Privately owned but are closely regulated by the government – Companies cannot set prices as they wish

14 Government Regulates Preventing Unfair Business Practices – Government attempts to promote fair competition – Monopolies – When a business has control of the market for a product or service. Creates no competition and can set the prices as they wish Could provide poor quality products Antitrust Laws – Created to prevent monopolies and promote completion and fairness

15 Government Regulates Preventing Unfair Business Practices Antitrust Laws – Created to prevent monopolies and promote competition and fairness – Also prevents other unfair business practices such as false advertising, deceptive pricing, and misleading labeling. » Each of these hurts and reduces consumer choice

16 Government Assists Businesses Purchase Products and Services – Roughly 20% of all goods and services purchased in the US Hire Workers – Government is the single largest employer – About 1 out of every 9 worker is a public employee

17 Government Assists Businesses Government Raises Money – Revenue – Income raised Gov’t raises revenue through Taxes and Borrowing – Additional sources of revenue: » Fines, Fees, and Licenses – Taxes – Levied on earnings, value of property, and on the sale of goods and services.

18 Government Assists Businesses Government Raises Money – Taxes Income Taxes – Levied on the income of the individual – Largest source of revenue for the federal government Corporate Taxes – Based on the businesses profits Property Taxes – Largest source of income for Local Governments – Based on the value of your real estate – Used to pay for schools and other government services, such as police, fire, community parks, and libraries.

19 Government Assists Businesses Government Raises Money – Taxes Sales Tax – based on the things we buy. – Borrowing Bonds – Borrower pays back the debt plus interest. – Very little risk for the buyers of bonds


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