5
QuizMultiple Choice

Entrepreneurship — Unit test

Question 5 • IL-Economics

Which is a function of regulatory agencies?

Answer
e
encouraging business compliance
c
creating legislation for businesses
e
encouraging negative externalities
c
creating new business opportunities

Explanation

Regulatory agencies oversee industries and enforce rules designed to protect the public and ensure businesses follow the law. Encouraging business compliance is therefore a function of these agencies. They do not create legislation; that is primarily the role of lawmakers.

AI-written and checked against the verified answer.

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