Question

Chao sells custom bicycles. He buys several bike parts including wheels and tires from Upright Strides, Inc. Although several government-supported regulations help Chao in his business, regulations that make it easy for his business to enjoy good vendor relationships are ________a. lower taxes that business-to-business customers pay to each other. b. laws that permit minimal corruption in banking institutions. c. laws that permit small businesses to use the government as an intermediary when doing business with other small businesses. d. laws that support enforceable contracts between firms.

Answer 1

Answer:

d. laws that support enforceable contracts between firms.

Explanation:

Chao sources his bicycle bparts from Upright Strides Inc. such as wheels and tires. A threat to his business will be if he does not get his supply from Upright Strides Inc. Long drawn out disputes will cause loss of income for Chao.

So if the government implements laws that supports enforceable contracts between firms, in the case of dispute or non supply of goods Chao can enforce their contract with Upright Strides compelling them to supply goods.