Government Intervention in Business Essay Example | Topics and Well Written Essays - 2000 words

Government Intervention in Business - Essay Example The government as well makes sure that the welfare of the people is put as priority at all times, (at least in theory). This becomes evident with Government Owned and Controlled Corporations, wherein some governments enter into the manufacturing or distribution of fast moving consumer goods to post a more competitive price range for its people rather than the good produced by multinational corporations- this is very evident in third world countries especially in the fields of pharmaceutical corporations and basic commodities such as rice and oil. The government also subsidizes some semi government owned companies, or agencies which delivers basic commodities to the people. Example of which are in the fields of energy, transportation, food (rice). This is done, in order to avoid the monopoly of certain markets and private corporations which usually dictate the market price of goods that sometimes are higher than what the lower class could afford. Disadvantages of government intervention in business can be felt if the government no longer regulates but prevents business from doing its vital functions. Too much government control suffocates the economy. This can sometimes be evident through the different taxes, tariffs and trade regulations that governments post in order to protect, propagate or hinder a certain market. An example of which is that sometimes, As Stated the doctrine of laissez-faire, "workers are most productive and a nation's economy functions most efficiently when people can pursue their own economic interest freely". However, the economy of the United States is no where close to being a laissez-faire system. Based on studies, government spending and intervention in the economic sector has ballooned. The role of government has grown to a point where the benefits of government intervention are far outweighed by the negative effects on the economy as a whole(Ringer, 150). In the United States, one of the major areas in which the government intervenes is in the agricultural sector of the economy. The government has three ways it can intervene and help its producers. These ways include price policies, direct payments, and input policies. Price policies have the largest effect on producers. Tariffs, quotas, and taxes are just a few examples of price policies. While these policies bring revenue into the government, in the end they hurt consumers. Each of these policies raise the prices of both imported and native goods. They are designed to help stabilize prices and give the native producers a chance to compete with foreign goods. Under the doctrine of laissez-faire, the government would not interfere with prices and the native producers would be forced to lower their prices, giving the nation's citizens a better deal in the market. The use of taxes is one of the government's favorite ways to make its presence known in the economy. While this method seems blatantly obvious, many of the ways the government uses the money collected by taxation is not. Some of the money it takes is used to fund other programs designed to "protect" consumers and to "create" jobs. Because of

Assignment 1- Accounting Essay Example | Topics and Well Written Essays - 1000 words

Assignment 1- Accounting - Essay Example In a balance sheet, the sum of all the liabilities and the equity of an organization should be equal to the assets; as all the assets would either be financed through taking up liabilities or providing equity to the stockholders. Therefore, Assets are the economic resources that are owned by an organization. They may be tangible in nature such as building, inventory, cash, accounts receivable etc., or intangible in nature such as good will. Broadly speaking, there are two kinds of assets; Fixed and Current Assets. Currents assets are assets which can be easily converted into cash such as inventory and accounts receivable. Assets which cannot be easily converted into cash such as real estate, buildings are known as fixed assets. Liabilities are debt that is held by an organization. An organization may have taken up debt from its suppliers, or banks, or vendors and creditors. This section shows all the money that an organization has to pay off, in the short term or in the long terms. The third section, Equity, is another method of raising money, where shares are given to stockholders and money is taken from them for the purpose of the business. Shares help the stockholders become part owners of the organization. Balance sheet provides information regarding the trends that are present related to an organization regarding the elements of the balance sheet. A comparative analysis of balance sheet items such as accounts receivable, accounts payable would help identify trends over the years regarding these assets and liabilities. Or are the cash reserves declining over the years; the investors might then look deeply into the matter to see the reason behind it. In short, it provides the changing scenario of the organization over the years; in a profit and loss statement, the information is pertaining to that certain year only. Fixed Assets are a part of the Assets; they are those assets of the organization which cannot be easily converted into