CQS 111 Business notes

Institution government justification for government

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Unformatted text preview: – Large corporations and the managerial revolution lead to distancing between consumers and owners – Increases in size of business and evolution of/need for a managerial class alters sense of direct responsibility of business to its customers and rest of society – Abuses multiply and society demands intervention from a more powerful social institution - - - government – Justification for Government Regulation Complexity of organizational structure of businesses and failure of the market mechanism to assure satisfaction of wants and insure fairness • • • • • • • • • • – Government regulation of business begins early in 19th century and changes in scope and purpose over the rest of the century and into the 20th century – Legal basis for regulation exists in the Constitution Initial Regulatory Acts Four waves of regulation – First acts actually designed to protect the institution of business • protection of infant industries • protection of business by insuring fair competition • protection of consumers and society at large Two basic types of regulation: functional and industry; two forms of attack: structur...
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This document was uploaded on 03/06/2014 for the course CQS 111 at Binghamton.

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