ROLES OF GOVERNMENT
IN BUSINESS
2
“Copyright and Terms of Service
Copyright © Texas Education Agency. The materials found on this website are copyrighted © and trademarked ™ as
the property of the Texas Education Agency and may not be reproduced without the express written permission of the
Texas Education Agency, except under the following conditions:
1) Texas public school districts, charter schools, and Education Service Centers may reproduce and use copies of the
Materials and Related Materials for the districts’ and schools’ educational use without obtaining permission from the
Texas Education Agency;
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way;
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reasonable charge to cover only the cost of reproduction and distribution may be charged.
Private entities or persons located in Texas that are not Texas public school districts or Texas charter schools or any
entity, whether public or private, educational or non-educational, located outside the state of Texas MUST obtain written
approval from the Texas Education Agency and will be required to enter into a license agreement that may involve the
payment of a licensing fee or a royalty fee.
Copyright © Texas Education Agency, 2011. All rights reserved.
3
Roles of Government in Business
General Roles
• Maintaining Competition
• Maintaining Legal and Social
Framework
• Stabilizing the Economy
• Redistributing Income
• Providing Goods and Services
• Correcting for Externalities
Copyright © Texas Education Agency, 2011. All rights reserved.
Regulator versus Provider
• Government as Regulator
▫ Protecting Competition
▫ Protecting Business
Agreements
▫ Protecting Creative Property
▫ Regulating Production
Process
• Government as Provider
▫ Public Services
▫ Work
▫ Business
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GOVERNMENT AS REGULATORS
Regulating
Production
Process
Protecting
Creative
Properties
Regulatory
Functions of
Government
Protecting
Business
Agreements
Copyright © Texas Education Agency, 2011. All rights reserved.
Protecting
Competition
5
Protecting Competition
The government protects businesses
against:
▫
▫
▫
▫
Trust
Monopoly/Oligopoly
Collusion
Price Fixing
Copyright © Texas Education Agency, 2011. All rights reserved.
Regulatin
g
Productio
n Process
Protectin
g
Creative
Propertie
s
Regulato
ry
Function
s of
Governm
ent
Protectin
g
Business
Agreeme
nts
Protectin
g
Competit
ion
6
The Government and Competition
Examples of laws that protect companies from illegal competitive practices.
LAWS
Sherman Act (1890)
Federal Trade Commission Act (1914)
Clayton Act (1914)
COMPANIES TO RESEARCH
Microsoft
Paramount
AT&T (RBOC)
Websites
http://www.ftc.gov/bc/antitrust/antitrust_laws.shtm
http://www.justice.gov/atr/
Copyright © Texas Education Agency, 2011. All rights reserved.
7
Protecting Business Agreements
Protectin
g
Creative
Propertie
s
Regulatin
g
Productio
n Process
Regulato
ry
Function
s of
Governm
ent
Protectin
g
Business
Agreeme
nts
The government enforces binding legal
agreements against various breaches:
▫
▫
▫
▫
Breach of contract
Breach of fiduciary duty
Breach of rental agreement
Breach of warranty
Copyright © Texas Education Agency, 2011. All rights reserved.
Protectin
g
Competit
ion
8
The Government and Business Agreements
Laws regarding business agreements.
Uniform Commercial Code
(1952)
Copyright © Texas Education Agency, 2011. All rights reserved.
9
Protecting Creative Properties
The government protects intellectual
property:
▫ Copyright
▫ Patent
▫ Trademark
Copyright © Texas Education Agency, 2011. All rights reserved.
Regulatin
g
Productio
n Process
Protectin
g
Creative
Propertie
s
Regulato
ry
Function
s of
Governm
ent
Protectin
g
Business
Agreeme
nts
Protectin
g
Competit
ion
10
The Government and Creative Property
Examples of laws that protect intellectual property.
Copyrights * Trademarks * Patents
LAWS
Copyright Law (1790)
Patent Act of the U. S. (1790)
Lanham Act (1946)
Freedom of Information Act (1966)
Websites: http://www.uspto.gov/
Copyright © Texas Education Agency, 2011. All rights reserved.
http://www.copyright.gov/
11
Regulating Production Process
The government protects environments
in which we work and live.
Copyright © Texas Education Agency, 2011. All rights reserved.
Regulatin
g
Productio
n Process
Protectin
g
Creative
Propertie
s
Regulato
ry
Function
s of
Governm
ent
Protectin
g
Business
Agreeme
nts
Protectin
g
Competit
ion
12
The Government and Production
Examples of laws that protect the environment.
LAWS
National Environmental Policy Act
(1969)
Clean Air Act (1970)
Clean Water Act (1972)
Website: http://www.epa.gov/
Copyright © Texas Education Agency, 2011. All rights reserved.
13
GOVERNMENT AS PROVIDER
Public
Services
Work
Business
Investors
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14
Public Services
Public
Services
Work
Business
Investors
The government provides jobs and work-related
support to members of society.
Copyright © Texas Education Agency, 2011. All rights reserved.
15
The Government as Provider of Public Services
Examples of work-related public services that the government provides.
• Postal Service
• Armed Services
• Parks/Recreation
• Transportation
• Education
• Police/Fire
Copyright © Texas Education Agency, 2011. All rights reserved.
16
Work
Public
Services
Work
Business
Investors
The government provides jobs and work-related
services to society.
Copyright © Texas Education Agency, 2011. All rights reserved.
17
The Government as Provider of Work Laws
Examples of laws that protect the rights of employees.
LABOR LAWS
•
•
•
•
Social Security Acts (1935, 1965)
Fair Labor Standards Act (1938)
Family and Medical Leave Act (1993)
Occupational Safety and Health Act
(1970) Employee Retirement Income
Security Act (1974)
•
Websites: http://www.texasonline.com/portal/tol/en/bus/home
http://www.dol.gov/whd/fmla/index.htm
Copyright © Texas Education Agency, 2011. All rights reserved.
18
Business
Public
Services
Work
Business
The government provides jobs and workrelated support to members of society.
• Small Business Administration
• Subsidies
• Tax Incentives
Copyright © Texas Education Agency, 2011. All rights reserved.
Investors
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Business
Examples of business-related public services that the government provides.
Small Business
Administration (1953)
Website: http://www.sba.gov/aboutsba/index.html
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20
Investor
Public
Services
Work
Business
The government provides protection
to investors in businesses.
Copyright © Texas Education Agency, 2011. All rights reserved.
Investors
21
Investor
Examples laws that protect the rights of investors.
• Securities Act (1933)
• Securities Exchange Act (1934)
• Sarbanes-Oxley Act (2002)
Website: http://www.sec.gov/
Copyright © Texas Education Agency, 2011. All rights reserved.
22
Source Cited
•
•
•
•
•
ecedweb.unomaha.edu/lessons/fecga.htm
www.jmu.edu/madison/teacher/jeopardy/jeopardy.htm
definitions.uslegal.com/
www.ftc.gov/bc/antitrust/antitrust_laws.shtm
www.uspto.gov/web/offices/ac/ahrpa/opa/kids/special/kidbright.h
tml
• www.merriam-webster.com
• http://rubistar.4teachers.org/
Copyright © Texas Education Agency, 2011. All rights reserved.