Question

Is the government an external force, an internal force, a stakeholder, or all of the above? Using examples from your activities, comment on the government’s role in business and society.

please provide references as well.

Answer 1

The government can be an external force, an internal force or a stakeholder at different times.

                       The government can act as an external force by the process of legislation that affects the bussiness and society. Through the process of legislation, it can lay various rules and regulations to carry out the bussiness. The government can fix the minimum wages. Through the taxation, it can lay various bars to collect taxes from the enterprises. Thus, the role of govenment 's external role holds immense importance for the bussiness and society. For example in India various Acts that are directly affecting the business are -

1. The Companies Act

2. Income Tax Act

etc.

                    The government can act as an internal force in a way of Auditing whether the rules and regulations conforms to the Acts made through legislation. It also offers various incentives and rebates such as exemptions in taxes to set up business models in a certain location through various Acts passed by the legislative bodies. Thus, the govenrment is acting as an Internal force.

          The govenment can take the role of a stakeholder. It can have stakes in some of the ventures generally referred to as public ventures. There are many public units in which the government can monetise. Thus, this role of government is also an important contribution.