Question

1. Government regulation of business changes over time, often in response to public sentiment, the political environment, and the economy. At times the pendulum swings toward more regulation, and other times it favors deregulation. Regardless of the case, businesses must work within the legal and regulatory environment as it applies to their business or industry. Discuss the major challenges facing business in today’s regulatory setting, giving specific examples of instances where regulation helps and hurts business.

2. Corporate social responsibility (CSR) has put many companies in the spotlight, for both good and bad reasons. Some would argue that a business’s only responsibility is to “increase shareholder wealth” or that the “business of business is business.” List three advantages and disadvantages of a company devoting valuable resources to CSR, being as specific as possible in your response and giving examples, where possible.

3. Many businesses begin as sole proprietorships; however, almost no large companies are organized this way. Why is the sole proprietorship such a popular form of ownership for new business? What features of the sole proprietorship make it unattractive to companies that want to expand and grow their business?

4. You are attending your high school reunion, and while you are standing in the buffet line, you see Matthew, the president of your senior class handing out his business cards to a group of classmates. When you ask someone to see his card, it indicates that he is CEO of MegaBucks, a company that has been in the news lately as one of the fastest-growing small businesses in the region. You are not surprised by this at all. A) Describe the characteristics that Biff possesses that have made him a successful entrepreneur. What steps or actions would he have taken as he started his business in order for it to be successful?

Answer 1

I will answer Q1 as per HomeworkLib policy. Kindly respect HomeworkLib policy.

Q1)Regulatory setting  means businesses   which require government control in various matters.The challenges are growing revenue.hiring employees,government regulations,increasing profit and employee health care.Business face problems in receiving funds from financial institutions and also face challenges to deal with the human resource problems. Companface face problems in mazimization of profits and minimization of costs. Businesses need to do a lot of adjustment in complying with regulatory issues.This means  worrying about minimum wage increase , laws in securing data of consumers etc.Employee health care is a very big concern of businesses.

The regulatory environment is the top issue that impact business.CEO's of businesses are spending more time with regulators.Healthcare and financial services are most affected by regualtory environment in US.In the financial sector regulatory control bring transparency as well as reduce market risk.This way regulation help . Again new regulations are expensivein terms of compliance as companies are required to change their data gathering systems, organizational structures etc. Regualtory system control growth of revenue and profit of businesses.Thus regulations help and hurt businesses.