The Role of Government in Business Chapter 11 pp. 160-173

Introduction to Business Learning Objectives After completing this chapter, you’ll be able to: Describe ways government protects business. Name some of the services the government provides. Explain why the government collects taxes. State the ways the government promotes business. Introduction to Business

Introduction to Business Why It’s Important Government rules promote and regulate the actions of business. The laws influence the production, selling, and pricing of goods and services. Introduction to Business

How Government Affects Business 1. To promote economic growth, local, state, and national governments _________________ to both promote and regulate business. pass laws Introduction to Business

Government as Regulator The three different levels of government are: Federal State Local Introduction to Business

Government as Regulator The ______________________ focuses on business that takes place across all states, or _____________________ State governments focus on _____________________, or business ___________________. federal government interstate commerce. intrastate commerce within the state Introduction to Business

Government as Regulator 5. The four aspects of the economy that the government regulates are: Protecting competition Protecting business agreements Protecting creative properties Regulating the production process Introduction to Business

Introduction to Business Figure 11.1 GOVERNMENT REGULATIONS Government regulates these four aspects of the economy. Which one do you think has side effects on our environment? Introduction to Business

Protecting Competition oligopoly 6. An ________________ is when a ________________________________ control the market without actually forming a trust. 7. A company that controls an ________________is called a _______________. small number of companies entire industry monopoly Introduction to Business

Protecting Competition Rival companies can form a monopoly ______________________________ and agreeing not to compete with each other. ______________ allow the government to ___________________________ _______________________________. by banding together into a trust Antitrust laws break up monopolies, regulate them, or take them over Introduction to Business

Protecting Competition The government created the Federal Trade Commission (FTC) __________________________ 11. Its job includes ________________ for _________________. to regulate interstate trade setting standards honest advertising Introduction to Business

Introduction to Business Limits on Competition The merger between America Online (AOL) and Time Warner is the largest media merger in history. The new company was worth $110 billion, after the merger. continued Introduction to Business

Introduction to Business Limits on Competition The Federal Trade Commission was concerned that the new AOL-Time Warner would limit competition. To avoid this, they required Time Warner to open its broadband pipes to competing Internet service providers. continued Introduction to Business

Introduction to Business Analyze What are the advantages of the AOL and Time Warner merger? Introduction to Business

Protecting Business Agreements 12. One of the most basic ways the government protects business is by _________________. 13. A ___________ is a legal agreement between ________________________ ________________________ enforcing contracts contract two or more parties to conduct business Introduction to Business

Protecting Business Agreements written, verbal or 14. A contract can be _________________ _____________________________. 15. A contract protects __________________________________ 16. When one party fails to live up to the terms of a contract it is called a ____________________ even done with a handshake. all the parties that agree to it. breach of contract. Introduction to Business

Assisting Business Protecting Creative Properties A ______________ gives artists the sole right to own their creations, such as plays, photos, music, paintings, and books. A ___________ gives you the sole right to own an ______________. copyright patent invention Introduction to Business

Protecting Creative Properties 19. A _____________ is a ______________________________ ______________, or a combination of these that is given legal protection by the federal government. trademark brand name, trade name, trade characteristic Introduction to Business

Regulating the Production Process 20. The government tries to stop ________________________________. 21. These regulations ________________ of wastes that factories can discharge into the environment. industrial pollutants with regulations limit the amount Introduction to Business

Introduction to Business Fast Review What is the difference between interstate and intrastate commerce? What are the ways the government can deal with a monopoly? Interstate commerce is business between states overseen by the federal gov. Intrastate is business within a state and overseen by state gov. Break it up, regulate it or take it over Introduction to Business

Introduction to Business Fast Review What kinds of properties are protected by copyrights? Explain the role of the legal system in business. Artistic creations like books, movies, music, plays and photos The government passes laws to protect competition, protect business agreements, protect creative properties and regulate the production process. Introduction to Business

Government as Provider 22. People pay for government-provided goods and services ________________. 23. The idea behind taxes is to ________________ goods and services and to ____________________________. through taxes. pay for public share the cost among many people Introduction to Business

Introduction to Business Figure 11.2 WORKING FOR TAXES During an average eight-hour workday, nearly three hours of your workday goes to paying federal, state, and local taxes. This comparative chart shows where people work the most and least for taxes. Name some ways in which the government spends the money for projects or services on your community. Source: Tax Foundation Introduction to Business

Government as Provider Government spending decisions directly affect how _____________________. 25. Government spending ____________________________, or the way in which income is allocated among families, individuals, or other designated groups in the economy. resources are allocated influences the distribution of income Introduction to Business

Providing Public Services The ____________ is the single _______________ of services in the country. 27. Many of the services the government provides are necessary for the _________________________ 28. Other services promote ____________. government largest provider protection of the public. social welfare Introduction to Business

Providing Public Services The government also provides _______________________________ _______________________________ 30. To pay for services, the government has to ______________. 31. The money the government takes in is called ____________. public education, roads, courts, post offices and many more. raise money revenue Introduction to Business

Providing Public Services Federal income tax is used to _____________________________ _____________________. Local taxes are used to ______________________________ 34. All three levels of government fund _________________. pay for highways, defense, and social security pay for streets, libraries, and parks public education Introduction to Business

Services the Government Provides Graphic Organizer Graphic Organizer Services the Government Provides PUBLIC SAFETY PUBLIC TRANSIT COURT SYSTEM GOVERNMENT SERVICES PARKS AND RECREATION PUBLIC EDUCATION POSTAL SERVICES WELFARE SUBSIDIES Introduction to Business

Introduction to Business Providing Work 35. The government is the single __________________ in the country. 36. The federal government employs over ___________________. largest employer three million people Introduction to Business

Introduction to Business Providing Work 37. For people ___________________, the government provides _______________________. 38. It also provides _________________________________. temporarily out of work unemployment insurance welfare benefits and job training programs. Introduction to Business

Introduction to Business Assisting Business 39. The government is the single ____________________ of goods and services. 40. The government buys most of its ______________________________ or has it specially made, such as military aircraft and fire trucks. largest consumer equipment directly from businesses Introduction to Business

Introduction to Business Assisting Business small business administration 41. The ____________________________ (SBA) offers different kinds of loans to aspiring small-business owners The government also ______________________________ that are in financial trouble. To protect American businesses from ______________________, the government sets up _____________________. . lends money to big businesses unfair foreign competition trade barriers Introduction to Business

Introduction to Business Assisting Business ____________ are payments the government gives to businesses to ______________________________. To encourage ____________________, the government offers businesses ________________________________. Subsidies make up for their losses socially responsible behavior reduction in taxes or tax incentives Introduction to Business

Introduction to Business Assisting Business 46. _______________ are given to companies that conserve energy or use alternate sources of fuel. 47. ________________________ are offered to businesses that do community development. Tax breaks Loans and tax breaks Introduction to Business

Introduction to Business Fast Review What are some services the government provides for the public? Name different types of government workers. Defense, education, parks, museums, libraries, roads, police, fire department, mail, trash collection public officials, courthouse clerks, mail carriers, military personnel, teachers, bus drivers, police, fire fighters, trash collectors. Introduction to Business

Introduction to Business Fast Review Describe the types of activities performed by government in business. The government buys goods and services from business. It lends money to aspiring small-business owners through the Small Business Administration and lends money to big businesses in financial trouble. It protects businesses from unfair foreign competition by setting up trade barriers. It provides subsidies to business to make up for their losses. It offers tax breaks and tax incentives to business to encourage socially responsible behavior. Introduction to Business

Introduction to Business Name some roadways or highways in your community that need work. Does the city have any plans to repair them? continued Introduction to Business

Introduction to Business Name the issues your local board of education recently passed. What did they want to spend money on? continued Introduction to Business

Introduction to Business Has your family ever bought a product that was recalled by the manufacturer because it didn’t meet government regulations? What was it? continued Introduction to Business

Introduction to Business What is the amount of state tax you pay for clothing or food? Introduction to Business

The Role of Government in Business End of Chapter 11 The Role of Government in Business pp. 160-173

Introduction to Business Key Words interstate commerce intrastate commerce oligopoly monopoly trust antitrust laws contract Introduction to Business

Introduction to Business Key Words breach of contract copyright patent trademark revenue subsidies tax incentives Introduction to Business