1. Unit 2 - Understand the Nature of Business
Objective Understand responsible actions for conducting business.
Topic – Government as a Protector, Regulator, and Assistant

2. Government Roles Providing services for members of society
Protecting citizens, consumers, businesses, and workers
Regulating utilities and promoting competition
Providing information and support to businesses
Buying goods and services
Hiring public employees
Raising revenue

3. Government Protection - Worker
Provides safe work conditions for employees
Safety standards are set for buildings, machines, and chemicals
Government inspection and regulation of work areas help reduce the number of job-related injuries
Protects basic human rights of workers
Selection of someone for a job must be based on job requirements, training and experience
You cannot be denied work because of your race, religion, sex or age

4. Government Protection - Contracts
An agreement to exchange goods or services for something of value, usually money.
The government enforces contracts between businesses and individuals by ensuring agreed upon work and the exchange of money or other means are completed.
Examples of when contracts are used:
Buying an automobile
Leasing a building
Buying inventory
A business agrees to repair your car for $65. The business must complete the repairs and you must pay.

5. Government Protection - Contracts
Contract Elements
Agreement
An offer is made and accepted
Competent Parties
Parties must be of legal age and mentally competent
Consideration
Something of value must be exchanged
Legality
The product being sold must be legal
No fraud or deception can exist

6. Government Protection – Intellectual Property
Property that is the result of creativity
Music, Art, Books, Movies, Logos, etc.
Types of Intellectual Property
Copyrights
Protects the rights of authors, composers, and artists
Protection lasts for the lifetime of the person plus 70 years
Patents
The sole right to make, use, or sell new items
Protection last for 17 years
Trademarks
A word, letter, or symbol linked with a specific company or product
What is an example of each intellectual property?
Examples:
Copyright: Published poem titled Still I Rise by poet Dr. Maya Angelou
Patents: Nike’s production of the footwear
Trademarks: Starbucks symbol found on coffee cups

7. Government Regulation - Utilities
Public Utility
An organization that provides a service or product vital to all people
Telephone service, water, electricity
How does the government regulate?
Rates that the companies charge must be approved by government agencies

8. Government Regulation – Prevent Unfair Business Practices
Why does the government regulate?
To promote fair rates, services, and competition
How does the government prevent unfair business practices?
Antitrust Laws
Prevent unfair practices such as false advertising, deceptive pricing, and misleading labeling
Avoid monopolies
A monopoly exists when a business has control over the market for a product or service
Businesses with monopolies may charge higher prices and sell poor-quality products

9. Government Assistance - Business
Collecting and reporting valuable demographic information
Businesses can determine where potential customers are
Provide loans through the Small Business Administration (SBA)
New businesses get started
Buy goods and services
Pay companies to build schools and highways
Employs workers
Pay police officers, teachers, lawyers