Question

state the reasons for government participation in business activities

Answer 1

Answer -
Following are the reasons for government participation in business activities.
1.Owner - Government participate in certain business as a owner of the business activities.It is an organisation created by government for performing commercial activities and giving services at reasonable prices to people.e.g .postal services. Main reason provision of services to people at reasonable rates.
2.As a regulator -In case of business activities government regulations play an important role in marketing and advertising.It regulates business policies of misleading claims in marketing and advertising which creates improper image of the product or service among the people.
3.Government participate in the business for provision of infrastructure facilities for smooth conduct of activities like construction of roads,highways etc.
4.Government also implement rules and regulations for proper controlling of business activities like licensing,formulating policies ,setting of business standards etc.
5.Government also participate in business activities to ensure that business concern should produce quality products also prevent the production of bad quality goods.
6 Government participation is also important in protecting the rights of the employees working in the business organisation and ensure them proper safety and environment during work conditions.
7.Government participation is also important for protecting environment from pollution of industrial and production activities, set proper rules for environment and protection of environment and lives of people.