Government
People elected to run the country. is formed by politicians who run the country for the benefit of the population.
Governments try to encourage firms to invest and create jobs. The laws they introduce can sometimes help and sometimes hinder firms from doing this. This is because governments need to take into account the employment rights of employees as well as the development opportunities of business.
Governments aim to encourage business through their financial and economic policies
Governments have an interest in a business doing well so that they:
- want firms to pay Tax paid on the profit made by a company to the Government.
- want firms to create jobs and wealth for the population
- want firms to provide goods and services for the population
Governments can influence how a business operates by:
- raising or lowering corporation tax
- introducing or repealing laws that affect businesses
- offering grants to incentivise firms to locate to An area of high unemployment and low standard of living.