Business Mid Term

BUSN115 Midterm Study Guide

To earn full credit for the essay questions, your response to each question should answer the question completely in approximately 2 – 3 paragraphs. The exam reflects the following course objectives and possible topics:

TCO 1: Given a description of a typical business, demonstrate how that business acts within our economic system to achieve its goals as well as those of society, along with an understanding of how the future may impact these goals.

* Know how government regulation affects the economy.

1) There are those that say that regs. stifle growth because companies are hampered by the limitations, requirements, governance

and reporting requirements established by those regs.

Regulation often creates additional overhead costs to ensure compliance, reporting and oversight to those regs. They also tend to strictly define what is and is not permissible activity leaving established companies with less options to expand/grow. They also will say that the costs and restrictions are most unfair to the start-up/small companies as they are subject to the same regs. as the larger companies, however, without the personnel, funds, and tools to demonstrate compliance to the regs.

2) There are those that state the regulations are good for growth because it restricts the larger companies from monopolizing the market, allowing for the smaller companies to thrive in their niche markets and to not worry about larger companies taking their market share away. They will also say that it improves Wall Street confidence because they can trust the company's financials, can more easily forecast growth and can have greater confidence that companies are not doing soemthing illegal behind the scenes.

At the end, government regulations do all of the above. New businesses will pop up to support the new regs. Companies will have to adapt to operate successfully within the new business environment, and yes, some won't make it or do as...