Government’s Role In Business

Presenter: Jamuna Kumari Shrestha

Roll no:43
 Role of Government
Why it’s Important?

The Government rules promote and regulate the action

of business.

The laws influence the production , selling, the pricing

of goods and services.
Aspect of Government’s Role
• Government as regulator of Business:( market intervention )
• Government as promotor of Business:( Government support to organized national and
international exuviation and market promotion , Government shall provide subsidy
,incentive scheme ,income tax exemption , discounts on industrial sector and
machinery equipment.
• Government as planner:( such a development of infrastructure , co-operative market
SMEs to create a group and create a market, to provides soft loan for the lower and
middle .
• Government as an Entrepreneur:(Industries and hydropower )
• Government as consumer:( public procurement , service sector , national trading
,Nepal oil corporation , ,Agriculture material )

• Government as supplier: ( salt trading corporation , Agriculture development Co .

ltd. )
Government As Regulator
Goal is to protect both business and the public from unfair, unsafe, and unethical business practices.
There are Three level government are as follows:
• Federal Government: Focus on inter-state commerce or business that takes places across all
states. deal with foreign affairs, Approve to take foreign loan and grants , to established mutual co-
operation and good relationship with foreigners and nabouring countries , maintain law and
order , to protect national sovereignty , to collect the national tax ,mainly ;customs fee, VAT and
income tax .
• State Government: focus on intrastate commerce or business with in each state. (7 province) to
formulate rules ,regulation and province level policy, to conduct the development works at the
province level .to create the friendly environment for the investment
• Local Government : local bodies /metropolitan city/sub-metropolitan city/municipality/Rural
Municipality; (753) it focus on to create sound working environment at the local level ,solve and
settle of the problem ,to reduce the gap between employee and employer.
Protecting Competition
• Oligopoly: is when a small number of companies control the market.
• Monopoly: when one company controls an entire industry.
• Rival: Companies can form a monopoly by bonding together in to a
trust and agreeing not to compete with each other.
• Anti-trust laws: allow the government to
I. Regulate them
II. Break-up monopolies
III. Take them over
Protecting Business Agreements

• Contract: is a legal agreement between two or more parties to

conduct business it can be verbal ,written or handshake.

• Breach of contract: when one party fails to live up to the term of a

contract .
Protecting creative properties
• Copyright:, According to The copyright Act 2059(2002) ;gives artists
the sole right to own their creation such as plays ,photos ,music
,painting ,and books.

• Patent: gives one the right to own an invention.

• Trademark : is a brand name ,Trade name, Trade characteristics ,or a

combination of these that is given legal protection by the federal
government.(logos , symbols ).
 Regulating the production process

• Government tries to stop industries waste through regulation.

• Federal state local Governments all try to limit the amount of waste
that factories can discharge in to the environment .
Assisting Business
• The government :
-Single largest consumer of G&S
-Buys most of its equipment directly from other countries.
-Set up trade barriers to protect Nepalese Business.
• Subsidies:
- are payments the government gives to business ; to make-
up for their losses.
• Tax incentives : Government offers Businesses reduction in taxes to
be socially responsible.