1. The Role of Government in Business
Chapter 11 pp

2. 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

3. 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

4. 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

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

6. 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

7. 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

8. 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

9. 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

10. 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

11. Protecting Competition
The government created the Federal Trade Commission (FTC) __________________________
11. Its job includes ________________ for _________________.
to regulate interstate trade
setting standards
honest advertising
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12. 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

13. 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
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14. Introduction to Business
Analyze
What are the advantages of the AOL and Time Warner merger?
Introduction to Business

15. 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

16. 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

17. 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

18. 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

19. 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

20. 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

21. 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

22. 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

23. 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

24. 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

25. 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

26. 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

27. 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

28. 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
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29. 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
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30. 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.
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31. 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
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32. 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
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33. 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
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34. 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
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35. 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

36. 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.
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37. Introduction to Business
Name some roadways or highways in your community that need work. Does the city have any plans to repair them?
continued
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38. Introduction to Business
Name the issues your local board of education recently passed. What did they want to spend money on?
continued
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39. 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
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40. Introduction to Business
What is the amount of state tax you pay for clothing or food?
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41. The Role of Government in Business
End of
Chapter 11
The Role of Government in Business pp

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

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