Question

An agency's power to determine whether the activity of a regulated entity is acceptable or not is an example of:______.a. rate-making power.b. licensing power.c. power over business practices.d. liability power.

Answer 1

Answer:

c. power over business practices

Explanation:

Regulatory agencies are formed to monitor and checkmate adverse activities of a certain sector of an economy.

They have various powers that can be used to control activities in a economic sector:

- Licencing power is the ability to give access to the players in a particular business sector.

- Rate making power is the ability of regulatory agency to determine price of commodities

- Power over business practices is regulatory agency's power to determine whether the activity of a regulated entity is acceptable or not.

For example if regulatory agency in communication notices the process for registering new clients is too cumbersome, they can enforce a more simple and streamlined process