Question

"What is the impact of government rules and regulations on business" ?

Answer 1

The impact of government rules and regulations on business could be in both way i.e it could be positive as well as negative depending upon different rules and regulations. Some time these rules and regulations are works as guiding principles which sets a limit for businesses.

Change in business laws means changes in the way businesses operate. Taxation policy is one the government policies that affect businesses directly because taxation is based on the amount of money earned by all businesses.

Tax payment is a major issues where business have to comply with the rules and regulations of the government to avoid any kind of legal consequences. It is not only about the payment of tax but also about what type of business tax is to be paid and when it has to be paid. Business have to pay different kinds of taxes. The other rule and regulations which impacts business could be employment laws which makes organization to ensure safe working condition , properly payment etc.for the employees . Business laws also affect employer to employee relationships.

These were few examples where government rules and regulations impacts the organization . It is not limited to these examples only there is along list like environmental regulations, Corporate Social Responsibility, etc.

Sometime various tax benefits , incentives , various policies of government also impacts the businesses positively. It also impacts the future growth of the business and have considerable bearing of successful running of business. Advertising is also guided by governments rules and regulations . The entire product design right from ingdients to packaging and labelling are impacted by government policies. The environment in which business has to operates is legal and political environment .