There are different rules and regulations laid down by the government to regulate and control business activities in a country. This is so in order to set a uniform standard for every business organization to follow. Some of these are:
(i) Copyright: These are legal rights that writers, musicians, or artists have on their works. This, therefore, makes it illegal for anyone to either use a part or the whole of the work without permission.
(ii) Business Registration: It is mandatory by the companies Act to register with the corporate affairs commission before the commencement of its business, the corporate affairs issues a certificate of incorporation and a certificate of trading before the organization can commence business. This is done to indicate its legal status.
(iii) Patent Right: The government grants this right to an inventor to use his invention for a stipulated period of time. This is done to protect the inventor from being faked or imitated.
(iv) Trade Mark: This refers to a special mark or symbol that has been officially registered by a firm to distinguish its products from others.
(v) Publication of Account: The public liability companies (plc) are mandated to publish their annual accounts for the general public.
(vi) Standard weights and members: The government mandates all business organizations to make use of standard weights and measures for their products.
(vii) Approval of Business Location: Government can also control and regulate business enterprises.
(viii) Taxing Company’s Profit: Business can also be regulated by introducing tax on the profit of some business enterprises while poor companies may have their tax reduced through concession in order to encourage them.
(ix) Use of Standard Weight and Measures: All business enterprises are mandated to use standard weights and measures for the product offered for sale.
(x) Ensure Production of Safe Goods: Another way is to ensure that goods offered for consumption are safe and of high quality.
Reasons for Government Regulations
(i) To create uniformity in the mode of operations of companies.
(ii) To raise revenue (tax) for the government.
(iii) To make adequate provision for the production of quality products.
(iv) To create industrial harmony which enhances peace between the employer and the employees.
(v) To provide a regular supply of essential goods and services.
(vi) To promote the development of the country’s economy.
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