Question

How do Government policies affect business risk?

Answer 1

Taxation policy affect business costs . For example, a rise in corporation tax has same effect as increase in cost. Business can pass some of the tax on to the consumers in higher price, but it will also affect bottom line. Government spending policy also affect business.

Answer 2

Answer:

Governments establish numerous guidelines and strategies that guide businesses. A few rules, similar to the lowest pay permitted by law, are required, while different arrangements may impact your business by implication. Organizations should be adaptable enough to react to changing principles and strategies. This is genuine at the national level as well as more locally, too, as states and regions have their very own arrangements of rules. There are additionally universal arrangements that can impact how organizations work together.