ROLES OF GOVERNMENT IN BUSINESS

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3 Roles of Government in Business General RolesRegulator versus Provider Maintaining Competition Maintaining Legal and Social Framework Stabilizing the Economy Redistributing Income Providing Goods and Services Correcting for Externalities Government as Regulator ▫Protecting Competition ▫Protecting Business Agreements ▫Protecting Creative Property ▫Regulating Production Process Government as Provider ▫Public Services ▫Work ▫Business

4 GOVERNMENT AS REGULATORS Regulatory Functions of Government Regulating Production Process Protecting Competition Protecting Business Agreements Protecting Creative Properties Copyright © Texas Education Agency, All rights reserved.

5 Protecting Competition The government protects businesses against: ▫Trust ▫Monopoly/Oligopoly ▫Collusion ▫Price Fixing Regulator y Function s of Governm ent Regulating Production Process Protectin g Competit ion Protectin g Business Agreeme nts Protectin g Creative Propertie s Copyright © Texas Education Agency, All rights reserved.

6 The Government and Competition Examples of laws that protect companies from illegal competitive practices. LAWS Sherman Act (1890) Federal Trade Commission Act (1914) Clayton Act (1914) Websites Microsoft Paramount AT&T (RBOC) COMPANIES TO RESEARCH

7 Protecting Business Agreements Regulator y Function s of Governm ent Regulating Production Process Protectin g Competit ion Protectin g Business Agreeme nts Protectin g Creative Propertie s The government enforces binding legal agreements against various breaches: ▫Breach of contract ▫Breach of fiduciary duty ▫Breach of rental agreement ▫Breach of warranty Copyright © Texas Education Agency, All rights reserved.

8 The Government and Business Agreements Laws regarding business agreements. Uniform Commercial Code (1952)

9 Protecting Creative Properties Regulator y Function s of Governm ent Regulating Production Process Protectin g Competit ion Protectin g Business Agreeme nts Protectin g Creative Propertie s The government protects intellectual property: ▫Copyright ▫Patent ▫Trademark Copyright © Texas Education Agency, All rights reserved.

10 Copyright © Texas Education Agency, All rights reserved. The Government and Creative Property Examples of laws that protect intellectual property. LAWS Copyright Law (1790) Patent Act of the U. S. (1790) Lanham Act (1946) Freedom of Information Act (1966) Websites:

11 Regulating Production Process Regulator y Function s of Governm ent Regulating Production Process Protectin g Competit ion Protectin g Business Agreeme nts Protectin g Creative Propertie s The government protects environments in which we work and live. Copyright © Texas Education Agency, All rights reserved.

12 Copyright © Texas Education Agency, All rights reserved. The Government and Production Examples of laws that protect the environment. LAWS National Environmental Policy Act (1969) Clean Air Act (1970) Clean Water Act (1972) Website:

13 GOVERNMENT AS PROVIDER Public Services Work Business Investors Copyright © Texas Education Agency, All rights reserved.

14 Public Services The government provides jobs and work-related support to members of society. Public Services WorkBusinessInvestors Copyright © Texas Education Agency, All rights reserved.

15 The Government as Provider of Public Services Examples of work-related public services that the government provides. Postal Service Armed Services Parks/Recreation Transportation Education Police/Fire Copyright © Texas Education Agency, All rights reserved.

16 Work The government provides jobs and work-related services to society. Public Services WorkBusinessInvestors Copyright © Texas Education Agency, All rights reserved.

17 Copyright © Texas Education Agency, All rights reserved. LABOR LAWS Social Security Acts (1935, 1965) Fair Labor Standards Act (1938) Family and Medical Leave Act (1993) Occupational Safety and Health Act (1970) Employee Retirement Income Security Act (1974) Websites: The Government as Provider of Work Laws Examples of laws that protect the rights of employees.

18 Small Business Administration Subsidies Tax Incentives Business The government provides jobs and work- related support to members of society. Public Services WorkBusinessInvestors Copyright © Texas Education Agency, All rights reserved.

19 Business Examples of business-related public services that the government provides. Small Business Administration (1953) Website: Copyright © Texas Education Agency, All rights reserved.

20 Investor The government provides protection to investors in businesses. Public Services WorkBusinessInvestors Copyright © Texas Education Agency, All rights reserved.

21 Investor Examples laws that protect the rights of investors. Securities Act (1933) Securities Exchange Act (1934) Sarbanes-Oxley Act (2002) Website: Copyright © Texas Education Agency, All rights reserved.

22 Source Cited ecedweb.unomaha.edu/lessons/fecga.htm definitions.uslegal.com/ tmlwww.uspto.gov/web/offices/ac/ahrpa/opa/kids/special/kidbright.h tml Copyright © Texas Education Agency, All rights reserved.