Get premium membership and access questions with answers, video lessons as well as revision papers.

Explain five advantages of government involvement in business.

      

Explain five advantages of government involvement in business.

  

Answers


gregory
? Provision of essential services / goods for fair / reasonable prices /
affordable.
? Provision of large capital investment / undertake ventures that require large
sums – which private sectors may not be able to raise / without which
development would be minimal.
? Protection of citizens / to protect citizens from exploitation / malpractices by
business.
? Stimulation of economic development by developing social amenities /
infrastructure / roads / injecting funds into the economy / through
development projects.
? Creation of employment / to create jobs (for its citizens) to earn a living /
improve starndards of liing.
? Income generation / to generate government revenue through taxation /
activities.
? Stabilization of the economy – through regulation / market intervention.
? Promote equity / fairness in distribution of resources
? Control use of resources – through conservation / legislative measures /
ensure their sustainability.
? Maintenance of law / order – which allows for smooth operations (of country’s
affairs).
? Promotion of best practices through encouraging adoption of ICT / good
governance / social programmes / inclusivity.
? Promoting a country’s identity / image – through cultural programmes /
branding initiatives / participation in international competition / fairs.
? Reduce foreign dominance / promote a country’s sovereignty by regulating
foreign participation / encouraging local participation in the economy.
? Promotion of entrepreneurship cultures by encouraging business ownership /
training / funding businesses.
? Promotes investment in the country by creating enabling environment.

OR

1. It instills order and discipline in the business sector. Business organization behave and act responsively.

2. It ensures that all business organizations are owned and operated by credible people and organizations who are known and can be held accountable for their business activities.

3. The registration of business organization in the organization recognition and credibility and therefore the public can have business dealings with them with confidence.

4. The requirement that every business organization be registered including the foreign business organization operating locally ensures that all business organizations are subject to the law and regulations governing business activity in the country.

5. Registration of all business organizations also ensures that they all contribute towards revenue of the government through payment of taxes and other appropriate charges.

6. Government control and supervision of business organization ensures that all business organizations conduct themselves responsively with regard to business etiquette. This ensures that some business organizations do not undermine or take advantage of one another through unethical practice
gregorymasila answered the question on January 26, 2018 at 06:49


Next: Explain five factors that may promote entrepreneurship in Kenya.
Previous: State two types of each program control structure( a)Selection (b)Iteration

View More Business Studies Questions and Answers | Return to Questions Index


Learn High School English on YouTube

Related Questions