Question

The next step in your plan is to identify which government regulations will impact your business. In two to three sentences, describe what those regulations are and how you plan to meet them.

Answer 1

Sample Response: We must both pass serious health inspections made by the local government and advertise what we use to make our yogurt.

Answer 2

There are many types of goverment interventions that can affect a business, but taxes need to be specially mentioned.

Business have to pay taxes for the income generated by their economic activities, for the properties owned by the company, for the employees hired, etc. These taxes need to be considered as fixed costs that are impossible to circumvent. Therefore, the business plan and profit making mechanisms need to take taxes into account in their previsions. Part of the profit generated by the company by selling goods or services needs to be directed to meet the tax payments.