Article I, Section 8 of the Constitution of the United States gives Congress the power to make all laws which are “necessary and proper” to carry out its duties. MONEY MATTERS Impact of Government on Business Activities Within a Free Enterprise System UNT in partnership with TEA, Copyright © All rights reserved 1

 Provides protection  Regulates our economy  Assists business  Produces goods and services and hires workers  Raises money MONEY MATTERS Impact of Government on Business Activities Within a Free Enterprise System UNT in partnership with TEA, Copyright © All rights reserved 2

The Federal Government oversees the activities that involve 2 or more states or other countries Business transactions involving companies in more than one state are called interstate commerce Business transactions involving companies in more than one state are called interstate commerce Business activities within one state’s borders are called intrastate commerce Business activities within one state’s borders are called intrastate commerce MONEY MATTERS Impact of Government on Business Activities Within a Free Enterprise System UNT in partnership with TEA, Copyright © All rights reserved 3

Police and fire-fighting services Police and fire-fighting services Armed forces Armed forces OSHA – Occupational Safety & Health Administration OSHA – Occupational Safety & Health Administration Equal Opportunity Employer Equal Opportunity Employer EPA – Environmental Protection Agency EPA – Environmental Protection Agency Contracts and property rights Contracts and property rights MONEY MATTERS Impact of Government on Business Activities Within a Free Enterprise System UNT in partnership with TEA, Copyright © All rights reserved 4

Police - A body sanctioned by local, state, or national government to enforce laws and apprehend those who break them. Police - A body sanctioned by local, state, or national government to enforce laws and apprehend those who break them. Fire Department - the department of local government responsible for preventing and extinguishing fires Fire Department - the department of local government responsible for preventing and extinguishing fires MONEY MATTERS Impact of Government on Business Activities Within a Free Enterprise System UNT in partnership with TEA, Copyright © All rights reserved 5

(Military) the military forces of a nation or nations, including the army, navy, air force, marines, etc. paid for through the defense budget, which is funded through the government. (Military) the military forces of a nation or nations, including the army, navy, air force, marines, etc. paid for through the defense budget, which is funded through the government. MONEY MATTERS Impact of Government on Business Activities Within a Free Enterprise System UNT in partnership with TEA, Copyright © All rights reserved 6

OSHA was created by the U.S. Congress in 1971 to develop and enforce workplace safety and health rules throughout the country. OSHA was created by the U.S. Congress in 1971 to develop and enforce workplace safety and health rules throughout the country. MONEY MATTERS Impact of Government on Business Activities Within a Free Enterprise System UNT in partnership with TEA, Copyright © All rights reserved 7

Equal employment opportunity means that all individuals must be treated equally in the hiring process, in training, and in promotion. Equal employment opportunity means that all individuals must be treated equally in the hiring process, in training, and in promotion. MONEY MATTERS Impact of Government on Business Activities Within a Free Enterprise System UNT in partnership with TEA, Copyright © All rights reserved 8

an agency of the federal government of the United States charged with protecting human health and the environment, by writing and enforcing regulations based on laws passed by Congress an agency of the federal government of the United States charged with protecting human health and the environment, by writing and enforcing regulations based on laws passed by Congress MONEY MATTERS Impact of Government on Business Activities Within a Free Enterprise System UNT in partnership with TEA, Copyright © All rights reserved 9

Contract – an agreement to exchange goods or services for something of value, usually money Contract – an agreement to exchange goods or services for something of value, usually money May be written or unwritten May be written or unwritten Individuals (consumers) AND businesses benefit from Individuals (consumers) AND businesses benefit from government enforcement of contracts MONEY MATTERS Impact of Government on Business Activities Within a Free Enterprise System UNT in partnership with TEA, Copyright © All rights reserved 10

Purely intangible – cannot touch it Purely intangible – cannot touch it Patents Patents Copyrights Copyrights Trademarks Trademarks Music Music Art Art Discoveries & Inventions Discoveries & Inventions MONEY MATTERS Impact of Government on Business Activities Within a Free Enterprise System UNT in partnership with TEA, Copyright © All rights reserved 11

Patents give the inventor the exclusive right to make, use, or sell the item for 17 years. Patents give the inventor the exclusive right to make, use, or sell the item for 17 years. MONEY MATTERS Impact of Government on Business Activities Within a Free Enterprise System UNT in partnership with TEA, Copyright © All rights reserved 12

Copyright law protects the creative work of authors, composers, and artists. Copyright law protects the creative work of authors, composers, and artists. Continue for the life of the person receiving the copyright and for 50 years after the person’s death Continue for the life of the person receiving the copyright and for 50 years after the person’s death Identified with the © Identified with the © MONEY MATTERS Impact of Government on Business Activities Within a Free Enterprise System UNT in partnership with TEA, Copyright © All rights reserved 13

Trademark is a word, letter, or symbol associated with a specific company or product. Trademark is a word, letter, or symbol associated with a specific company or product. Company names Company names Team names Team names Label designs Label designs Identified with a symbol – a logo Identified with a symbol – a logo MONEY MATTERS Impact of Government on Business Activities Within a Free Enterprise System UNT in partnership with TEA, Copyright © All rights reserved 14

1. Regulating Utilities: Public utility – an organization that supplies a service or product vital to all people Public utility – an organization that supplies a service or product vital to all people Phone service (land line) Phone service (land line) Water Water Electricity Electricity The rates they can charge have to be approved by government agencies The rates they can charge have to be approved by government agencies MONEY MATTERS Impact of Government on Business Activities Within a Free Enterprise System UNT in partnership with TEA, Copyright © All rights reserved 15

2. Preventing Unfair Business Practices Promote fair competition Promote fair competition  If a company charges different prices to different people for the same product  Monopoly – when a business has control of the market for a product or service. No competition  Antitrust – prevent unfair practices such as false advertising, deceptive pricing, and misleading labeling. MONEY MATTERS Impact of Government on Business Activities Within a Free Enterprise System UNT in partnership with TEA, Copyright © All rights reserved 16

1. Census – helps business decide where the most potential customers are 2. Bureau of Labor Statistics 3. Department of Agriculture 4. Department of Commerce 5. Government loans (SBA –Small Business Administration) Tornadoes Tornadoes Floods Floods MONEY MATTERS Impact of Government on Business Activities Within a Free Enterprise System UNT in partnership with TEA, Copyright © All rights reserved 17

1. Government buys and uses a wide range of items  Filing cabinets  Fleets of automobiles  Jet aircraft  Computers 2. Total federal, state, and local government purchases of goods and services = 20% of all the goods & services produced in the U.S. 3. Many business depend on government contracts for survival MONEY MATTERS Impact of Government on Business Activities Within a Free Enterprise System UNT in partnership with TEA, Copyright © All rights reserved 18

4. Government hires workers a. Government is the single largest employer in our economy b. Police officers, fire fighters, and sanitation c. Judges d. Secretaries e. Administrative assistants f. Lawyers g. Teachers h. Meat inspectors i. Data analysts MONEY MATTERS Impact of Government on Business Activities Within a Free Enterprise System UNT in partnership with TEA, Copyright © All rights reserved 19

1. Taxes – Income taxes Income taxes Social Security tax Social Security tax Property taxes Property taxes Sales taxes Sales taxes Federal Insurance Contributions Act (FICA) tax Federal Insurance Contributions Act (FICA) tax Medicare tax Medicare tax 2. Borrowing – government borrows money by selling bonds Courthouse Courthouse Convention Center Convention Center MONEY MATTERS Impact of Government on Business Activities Within a Free Enterprise System UNT in partnership with TEA, Copyright © All rights reserved 20

Income tax – tax levied on the income of individuals or business MONEY MATTERS Impact of Government on Business Activities Within a Free Enterprise System UNT in partnership with TEA, Copyright © All rights reserved 21

Property tax – a tax that an owner is required to pay on the value of the property being taxed. MONEY MATTERS Impact of Government on Business Activities Within a Free Enterprise System UNT in partnership with TEA, Copyright © All rights reserved 22

Sales tax – one type of tax and is calculated and collected when people purchase items or receive certain services. MONEY MATTERS Impact of Government on Business Activities Within a Free Enterprise System UNT in partnership with TEA, Copyright © All rights reserved 23

Federal Insurance Contributions Act (FICA) tax – payroll (or employment) tax imposed by the federal government on both employees and employers to fund Social Security and Medicare: federal programs that provide benefits for: retirees, the retirees, the disabled, and disabled, and children of deceased workers children of deceased workers MONEY MATTERS Impact of Government on Business Activities Within a Free Enterprise System UNT in partnership with TEA, Copyright © All rights reserved 24

Social Security Tax – tax collected to fund Social Security program. The contribution on this tax is 6.2% of an employee’s income paid by the employer, and 6.2% paid by the employee (12.4% total). This tax has a maximum cap limit amount. MONEY MATTERS Impact of Government on Business Activities Within a Free Enterprise System UNT in partnership with TEA, Copyright © All rights reserved 25

Medicare tax – tax collected to fund the Medicare program. (Health insurance program for the elderly and disabled.) MONEY MATTERS Impact of Government on Business Activities Within a Free Enterprise System UNT in partnership with TEA, Copyright © All rights reserved 26

Bonds are ‘loans’ to the government MONEY MATTERS Impact of Government on Business Activities Within a Free Enterprise System UNT in partnership with TEA, Copyright © All rights reserved 27