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Methods of government involvement in business and how it uses regulations to involve in business

Answer Text:
Methods of government involvement in business.
i)Regulations
ii)Training
iii)Trade promotion.
iv)Provision of public utilities
v)Enabling environment.
i)Regulations:
-Refers to rules and legislation made by the state to control business activities.
-The government regulates business activities through:
-Licensing-government issues licenses before businesses are started.
-Legislation-It sets up laws governing operations of businesses in the country.
-Formulating policies-Formulates policies that guide operation of business.
-Offering incentives-By offering incentives, the government encourages some forms of business units.
-Taxation-use of taxation regulates the operation of business.
-Use of subsidies-Increase of subsidies encourages businesses while reduction discourages businesses.
-Price control-It may set the prices of essential goods and services hence regulating their provision.