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The Role of Governmentin Business
Chapter 11
pp. 160-173
Introduction to BusinessIntroduction to Business 22Slide 2 of 54
Learning ObjectivesLearning ObjectivesAfter completing this chapter, you’ll be able to:After completing this chapter, you’ll be able to:
1.1. Describe Describe ways government protects business.
2.2. NameName some of the services the government provides.
3.3. ExplainExplain why the government collects taxes.
4.4. StateState the ways the government promotes business.
Introduction to BusinessIntroduction to Business 33Slide 3 of 54
Why It’s ImportantWhy 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 BusinessIntroduction to Business 44Slide 4 of 54
How Government Affects How Government Affects BusinessBusiness
1. To promote economic growth, local, state, and national governments _________________ to both promote and regulate business.
pass laws
Introduction to BusinessIntroduction to Business 55Slide 5 of 54
Government as RegulatorGovernment as Regulator
2. The three different levels of government are:
– Federal– State– Local
Introduction to BusinessIntroduction to Business 66Slide 6 of 54
Government as RegulatorGovernment as Regulator
3. The ______________________ focuses on business that takes place across all states, or _____________________
4. State governments focus on _____________________, or business ___________________.
federal government
interstate commerce.
intrastate commercewithin the state
Introduction to BusinessIntroduction to Business 77Slide 7 of 54
Government as RegulatorGovernment 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 BusinessIntroduction to Business 88Slide 8 of 54
Figure11.1 GOVERNMENT REGULATIONS
Government regulates these four aspects of the economy.
Which one do you think has side effects on our environment?
Introduction to BusinessIntroduction to Business 99Slide 9 of 54
Protecting CompetitionProtecting Competition
6. An ________________ is when a ________________________________ control the market without actually forming a trust.
7. A company that controls an ________________is called a _______________.
oligopolysmall number of companies
entire industrymonopoly
Introduction to BusinessIntroduction to Business 1010Slide 10 of 54
Protecting CompetitionProtecting Competition
8. Rival companies can form a monopoly ______________________________ and agreeing not to compete with each other.
9. ______________ allow the government to ___________________________
_______________________________.
by banding together into a trust
Antitrust laws
break up monopolies, regulate them, or take them over
Introduction to BusinessIntroduction to Business 1111Slide 11 of 54
Protecting CompetitionProtecting Competition
10.The government created the Federal Trade Commission (FTC) __________________________
11. Its job includes ________________ for _________________.
to regulate interstate trade
setting standardshonest advertising
Introduction to BusinessIntroduction to Business 1212Slide 12 of 54
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
Limits on Competition
Introduction to BusinessIntroduction to Business 1313Slide 13 of 54
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
Limits on Competition
Introduction to BusinessIntroduction to Business 1414Slide 14 of 54
What are the advantages of the AOL and Time Warner merger?
Analyze
Introduction to BusinessIntroduction to Business 1515Slide 15 of 54
Protecting Business AgreementsProtecting Business Agreements
12. One of the most basic ways the government protects business is by _________________.
13. A ___________ is a legal agreement between ________________________
________________________
enforcing contracts
contracttwo or more parties to conduct business
Introduction to BusinessIntroduction to Business 1616Slide 16 of 54
Protecting Business AgreementsProtecting Business Agreements14. 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 ____________________
written, verbal oreven done with a handshake.
all the parties that agree to it.
breach of contract.
Introduction to BusinessIntroduction to Business 1717Slide 17 of 54
Assisting BusinessAssisting Business Protecting Protecting Creative PropertiesCreative Properties
17.A ______________ gives artists the sole right to own their creations, such as plays, photos, music, paintings, and books.
18. A ___________ gives you the sole right to own an ______________.
copyright
patentinvention
Introduction to BusinessIntroduction to Business 1818Slide 18 of 54
Protecting Creative Properties Protecting Creative Properties
19. A _____________ is a ______________________________
______________, or a combination of these that is given legal protection by the federal government.
trademarkbrand name, trade name, trade characteristic
Introduction to BusinessIntroduction to Business 1919Slide 19 of 54
Regulating the Production Regulating the Production ProcessProcess
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 BusinessIntroduction to Business 2020Slide 20 of 54
Fast Review
1. What is the difference between interstate and intrastate commerce?
2. 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 BusinessIntroduction to Business 2121Slide 21 of 54
Fast Review
3. What kinds of properties are protected by copyrights?
3. 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 BusinessIntroduction to Business 2222Slide 22 of 54
Government as ProviderGovernment 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 publicshare the cost among many people
Introduction to BusinessIntroduction to Business 2323Slide 23 of 54
Figure11.2 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 BusinessIntroduction to Business 2424Slide 24 of 54
Government as ProviderGovernment as Provider
24.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 BusinessIntroduction to Business 2525Slide 25 of 54
Providing Public ServicesProviding Public Services
26.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 ____________.
governmentlargest provider
protection of the public.
social welfare
Introduction to BusinessIntroduction to Business 2626Slide 26 of 54
Providing Public ServicesProviding Public Services29.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 BusinessIntroduction to Business 2727Slide 27 of 54
Providing Public ServicesProviding Public Services
32.Federal income tax is used to _____________________________
_____________________. 33.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 BusinessIntroduction to Business 2828Slide 28 of 54
Graphic Organizer
PUBLICTRANSITPUBLIC
TRANSIT
GOVERNMENTGOVERNMENTSERVICESSERVICES
GOVERNMENTGOVERNMENTSERVICESSERVICES
Services the Government ProvidesServices the Government Provides
Graphic OrganizerGraphic Organizer
PARKS ANDRECREATIONPARKS AND
RECREATION
COURTSYSTEMCOURTSYSTEM
PUBLICEDUCATION
PUBLICEDUCATION
WELFARESUBSIDIESWELFARESUBSIDIES
POSTALSERVICESPOSTAL
SERVICES
PUBLICSAFETYPUBLICSAFETY
Introduction to BusinessIntroduction to Business 2929Slide 29 of 54
Providing WorkProviding Work
35. The government is the single __________________ in the country.
36. The federal government employs over ___________________.
largest employer
three million people
Introduction to BusinessIntroduction to Business 3030Slide 30 of 54
Providing WorkProviding Work
37. For people ___________________, the government provides _______________________.
38. It also provides _________________________________.
temporarily out of work
unemployment insurance
welfare benefits and job training programs.
Introduction to BusinessIntroduction to Business 3131Slide 31 of 54
Assisting BusinessAssisting 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
Introduction to BusinessIntroduction to Business 3232Slide 32 of 54
Assisting BusinessAssisting Business41. The ____________________________ (SBA)
offers different kinds of loans to aspiring small-business owners
42.The government also ______________________________ that are in financial trouble.
43.To protect American businesses from ______________________, the government sets up _____________________.
.
small business administration
lends money to big businesses
unfair foreign competitiontrade barriers
Introduction to BusinessIntroduction to Business 3333Slide 33 of 54
Assisting BusinessAssisting Business
44.____________ are payments the government gives to businesses to ______________________________.
45.To encourage ____________________, the government offers businesses ________________________________.
Subsidies
make up for their losses
socially responsible behavior
reduction in taxes or tax incentives
Introduction to BusinessIntroduction to Business 3434Slide 34 of 54
Assisting BusinessAssisting 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
Introduction to BusinessIntroduction to Business 3535Slide 35 of 54
Fast Review
1. What are some services the government provides for the public?
2. 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 BusinessIntroduction to Business 3636Slide 36 of 54
Fast Review
3. 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.
Introduction to BusinessIntroduction to Business 3737Slide 37 of 54
Name some roadways or highways in your community that need work. Does the city have any plans to repair them?
continued
Introduction to BusinessIntroduction to Business 3838Slide 38 of 54
Name the issues your local board of education recently passed. What did they want to spend money on?
continued
Introduction to BusinessIntroduction to Business 3939Slide 39 of 54
Has your family ever bought a product that was recalled by the manufacturer because it didn’t meet government regulations? What was it? continued
Introduction to BusinessIntroduction to Business 4040Slide 40 of 54
What is the amount of state tax you pay for clothing or food?
pp. 160-173
End ofChapter 11 The Role of Governmentin Business
Introduction to BusinessIntroduction to Business 4242Slide 42 of 54
Key WordsKey Words
interstate commerceintrastate commerceoligopolymonopolytrustantitrust lawscontract
Introduction to BusinessIntroduction to Business 4343Slide 43 of 54
Key WordsKey Words
breach of contractcopyrightpatenttrademarkrevenuesubsidiestax incentives