ROLES OF GOVERNMENT
IN BUSINESS
Created by The University of North Texas in
partnership with the Texas Education Agency
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Copyright © Texas Education Agency, 2011. All rights reserved.
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the property of the Texas Education Agency and may not be reproduced without the express written permission of the
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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.
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Roles of Government in Business
Copyright © Texas Education Agency, 2011. All rights reserved.
General Roles
• Maintaining Competition
• Maintaining Legal and Social
Framework
• Stabilizing the Economy
• Redistributing Income
• Providing Goods and Services
• Correcting for Externalities
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 REGULATOR
Regulating
Production
Process
Protecting
Creative
Properties
Regulatory
Functions of
Government
Protecting
Competition
Protecting
Business
Agreements
Copyright © Texas Education Agency, 2011. All rights reserved.
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Protecting Competition
Regulatin
g
Productio
n Process
Protectin
g
Creative
Propertie
s
The government protects businesses
against:
▫
▫
▫
▫
Regulato
ry
Function
s of
Governm
ent
Protectin
g
Competit
ion
Protectin
g
Business
Agreeme
nts
Trust
Monopoly/Oligopoly
Collusion
Price Fixing
Copyright © Texas Education Agency, 2011. All rights reserved.
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The Government and Competition
Copyright © Texas Education Agency, 2011. All rights reserved.
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/
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Protecting Business Agreements
Protectin
g
Creative
Propertie
s
Regulatin
g
Productio
n Process
Regulato
ry
Function
s of
Governm
ent
Protectin
g
Competit
ion
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
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The Government and Business Agreements
Copyright © Texas Education Agency, 2011. All rights reserved.
Laws regarding business agreements.
Uniform Commercial Code
(1952)
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Protecting Creative Properties
The government protects intellectual
property:
Regulatin
g
Productio
n Process
Protectin
g
Creative
Propertie
s
Regulato
ry
Function
s of
Governm
ent
Protectin
g
Competit
ion
Protectin
g
Business
Agreeme
nts
▫ Copyright
▫ Patent
▫ Trademark
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The Government and Creative Property
Copyrights * Trademarks * Patents
Copyright © Texas Education Agency, 2011. All rights reserved.
Examples of laws that protect intellectual property.
LAWS
Copyright Law (1790)
Patent Act of the U. S. (1790)
Lanham Act (1946)
Freedom of Information Act (1966)
Websites: http://www.uspto.gov/
http://www.copyright.gov/
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Regulating Production Processes
The government protects environments
in which we work and live.
Regulatin
g
Productio
n Process
Protectin
g
Creative
Propertie
s
Regulato
ry
Function
s of
Governm
ent
Protectin
g
Competit
ion
Protectin
g
Business
Agreeme
nts
Copyright © Texas Education Agency, 2011. All rights reserved.
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The Government and Production
Copyright © Texas Education Agency, 2011. All rights reserved.
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/
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GOVERNMENT AS PROVIDER
Public
Services
Work
Business
Investors
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Public Services
Public
Services
Work
Business
Investors
The government provides jobs and work-related
support to members of society.
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The Government as Provider of Public Services
Examples of work-related public services the government provides.
• Postal Service
• Armed Services
• Parks/Recreation
• Transportation
• Education
• Police/Fire
Copyright © Texas Education Agency, 2011. All rights reserved.
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Work
Public
Services
Work
Business
Investors
The government provides jobs and work-related
services to society.
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The Government as Provider of Labor Laws
Copyright © Texas Education Agency, 2011. All rights reserved.
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) and Employee Retirement
Income Security Act (1974)
•
Websites: http://www.texasonline.com/portal/tol/en/bus/home
http://www.dol.gov/whd/fmla/index.htm
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Public
Services
Business
Work
Business
The government provides jobs and workrelated support to members of society.
Investors
• Small Business Administration
• Subsidies
• Tax Incentives
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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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Public
Services
Investor
Work
Business
The government provides protection
to investors in businesses.
Investors
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Investor
Examples of 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.
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Sources 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.