AFM 131: Intro to Business in North America

Impact of Government on Business ~

Worksheet
I nt roduc t i on t o For ms of Bus i ne s s Or gani z at i ons
Read page 102 in the text book.
Using the space provided below, respond to the following
questions.
Q - How can we use or how !oes "overnment invo#vement in $usiness a%ect us&
A - A%ects us in the form of ta'ation( creates #imits on the pro!ucts we can $u) with
a"e restrictions( an! imposes restrictions on $usinesses( even start ups*
Q - What historica# issues contri$ute! to the impact "overnments+ current#) have on
$usinesses&
A - Wor#! wars have "reat#) impacte! the e%ect of "overnments on $usiness( as !i!
the !epression an! economic stru""#es in #ater )ears*
Gove r nme nt Laws and Re gul at i ons
Watch the video !hort "ocu#entar$ on %isteriosis
&utbreak'.
Gove r nme nt St i mul at i on or Re s t r ai nt of t he c onom!"
Read !ti#ulus spending did little to boost econo#$, report
sa$s'.
Using the space provided below, respond to the following
questions.

Q - What !oes the author mean $) the statement( ,-hose measures .infrastructure
spen!in"/ wi## now "o into p#ace as the econom) recovers( meanin" the
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AFM 131: Intro to Business in North America
"overnment wi## 0n! itse#f in competition with .for/ private sector
resources1&
A - -he "overnment is now creatin" companies an! therefore situations where it is
$i!!in" on pro2ects an! resources a"ainst the private sector* 3ne !ownsi!e of
this is that these private companies are pa)in" ta'es( which in return are
creatin" competition an! stea#in" pro0ts from the companies*
Q - Wh) have there $een ta' shortfa##s that have contri$ute! #ar"e#) to the current
!e0cits&
A - -here are ta' shortfa##s !ue to in!ivi!ua#s spen!in" #ess( companies earnin" #ess
an! therefore pa)in" emp#o)ees #ess( therefore in!ivi!ua#s are makin" #ess
mone) so the "overnment is co##ectin" #ess ta'es*
Q - What is one impact the "overnment has to !ea# with as a resu#t of a monetar)
po#ic) fo##owe! !urin" the recent )ears&
A - 3ne impact in recent )ears is that of #ow interest rates encoura"in" e'cess
spen!in"( which in return cou#! create $ankruptc) as when interest rates
eventua##) rise peop#e wi## $e una$#e to pa) $ack what the) have $orrowe!*
(ake the Role of )overn#ent !elf*+ssess#ent ,ui-.

Summar !
Havin" now comp#ete! )our review of the impact of "overnment on $usiness(
p#ease comp#ete a short re4ective e'ercise a!!ressin" the fo##owin" points:
Q - What is the one thin" I am takin" awa) from this review&
A -
Q - How !oes this ,take5awa)1 re#ate to m) prior know#e!"e&
A -
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AFM 131: Intro to Business in North America
Q - What is m) mu!!iest point re#evant to this mo!u#e+s content&
A -
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