What Is One Reason That Businesses Support the Regulation of Business

question 14

Multiple Choice

What is one reason that businesses support the regulation of business?

• A) Regulation can eliminate some of the red tape that bogs down businesses.
• B) Regulation will increase production because equipment will be safer.
• C) Regulation will help eliminate business corruption.
• D) Regulation leads to lower prices, which increases demand and profits.
• E) Regulation can keep competitors from becoming too powerful.

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Definitions:

Federal Income Tax Withholding

Federal income tax withholding is the process by which an employer deducts a portion of an employee's income to pay directly to the federal government as a prepaid credit towards the employee’s annual tax liability.

Contingent Liabilities

Potential obligations that may arise from past events, depending on the outcome of future events.

IFRS

International Financial Reporting Standards, a set of global accounting guidelines that govern how companies prepare and disclose their financial statements.

GAAP

Generally Accepted Accounting Principles; the standard framework of guidelines for financial accounting used in any given jurisdiction.