BM1 3.01 Role of Government in Business

According to the text, what is the chief economic force in the United States?

• The government

• The private sector

• International trade

• State governments

What is one of the functions of business registration with the state government?

• To limit the risk to the amount they have invested in the business

• To provide free advertising for the business

• To exempt the business from paying taxes

• To automatically create a partnership

How does the government exercise its authority in business?

• By participating in daily business operations

• By owning all the businesses

• By enforcing contracts and protecting consumers

• By setting prices for all products

What is required for an agreement to constitute a contract under the law?

• A handshake between the parties

• A written agreement that is provable

• A verbal promise

• A witness to the agreement

What is one of the requirements the government imposes on marketers for consumer protection?

• Providing discounts on products

• Labeling products

• Offering free trials of products

• Ensuring products are made domestically

What is the mission of the Occupational Health and Safety Administration?

• To protect employees from discrimination

• To ensure a safe and healthful work environment

• To tax businesses and manage government budgets

• To make financial information public for companies

What is referred to as an "externality" in a marketing transaction?

• The tax imposed on corporate revenue

• The effect of a transaction on a third party

• The protection of investor rights

• The display of nutritional content on food packaging

What has been cited as evidence of lax government oversight in environmental protection?

• The establishment of the Equal Opportunity Commission

• The mission of the Occupational Health and Safety Administration

• The Gulf oil spill of 2010

• The taxation of personal income from dividends

How does the government balance the tax burden between the company and individual?

• By ensuring a safe and healthful work environment

• By protecting employees from discrimination

• By taxing corporate revenue and then personal income from dividends

• By making companies' financial information public

What is the role of the Securities and Exchange Commission?

• To ensure a safe and healthful work environment

• To protect the public from environmental externalities

• To tax businesses and manage government budgets

• To facilitate further investment by making financial information public