1. Principles of Business, Marketing, and Finance Lesson Fourteen The Role of Government in a Private Enterprise System UNT in partnership with TEA, Copyright ©. All rights reserved

2. Government in Society Roles of Government –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 UNT in partnership with TEA, Copyright ©. All rights reserved 2

3. Levels of Government Federal Government –Regulates foreign commerce –Regulates interstate commerce-business involving companies in more than one state State Government –Regulates intrastate commerce (business dealings involving companies that do business in only one state) UNT in partnership with TEA, Copyright ©. All rights reserved 3

4. Levels of Government Local Governments –County boards –City or town councils –Provide police, fire protection, public schools UNT in partnership with TEA, Copyright ©. All rights reserved 4

5. Government Protection Activities Citizens –Protected through police and fire- fighting services –National armed forces provide national defense Worker Protection –Laws for a safe work environment (OSHA) Occupational Safety and Health Administration –Government inspections and regulation of work areas help reduce the number of job-related accidents –Cannot be denied employment due to race, religion, sex or age UNT in partnership with TEA, Copyright ©. All rights reserved 5

6. Contract Enforcement Contract -an agreement to exchange goods or services for something of value (usually money) Elements of a Cont ract –Agreement –Competent parties –Consideration –Legality Consumers and businesses benefit from government enforcement of contracts UNT in partnership with TEA, Copyright ©. All rights reserved 6

7. Protection of Intellectual Property Patent -gives the inventor the sole right to make, use, or sell the item for 20 years Copyright -protects creative work of authors, composers, and artists for 70 years beyond the death of those individuals UNT in partnership with TEA, Copyright ©. All rights reserved 7

8. Trademark a word, letter, or symbol linked with a specific company or product –Businesses register company names, team emblems, and label designs with the government –A trademark can be very valuable –Many trademarks are famous all over the world and are often identified with a symbol (logo) UNT in partnership with TEA, Copyright ©. All rights reserved 8

9. Government Regulatory Activities Regulate Utilities –Public utility-an organization that supplies a service or product vital to all people –Companies that provide local telephone service, water, and electricity –Most utility companies are privately owned and closely regulated by the government UNT in partnership with TEA, Copyright ©. All rights reserved 9

10. Government Regulatory Activities Prevent Unfair Business Practices –Promote fair competition –Prevent monopolies –Antitrust laws-promote competition and fairness to avoid monopolies UNT in partnership with TEA, Copyright ©. All rights reserved 10

11. Government Assists Business Collects valuable information (census) Small Business Administration (SBA)-helps new businesses get started by guaranteeing private bank loans Government provides assistance for natural disasters Government buys goods and services Government employs workers UNT in partnership with TEA, Copyright ©. All rights reserved 11

12. Government Raises Money Taxes –On earnings –On the value of property –On the sale price of goods and services Borrowing –Issue bonds –Pay interest on the bonds ) –Bonds are backed by the government (decreasing risk for investors) UNT in partnership with TEA, Copyright ©. All rights reserved 12