Governments consist of administrators, arbitrators and legislators in the administrative organization that are responsible for state control at a given time and also the system in which they are organized. It can be defined as the means of enforcing state policies and mechanism in which state policies are determined. Each successive government has a body of people controlling and exercising control on political decision making. They have a responsibility of enforcing and making laws and also arbitrate conflicts.
legalisation on the other hand refers to law which has already been promulgated/ enacted by a government body or a legislature. Prior to the legislation being enacted into law it is normally referred to as a bill, however, it may be generally referred to as ‘legislation’ even as it is still under consideration in distinguishing it from other businesses. Legislation has many functions: to authorize, to regulate, to proscribe, to sanction, to provide, to grant, to restrict or to declare. Legislations are habitually proposed by members of legislature like a Member of Parliament or Congress. It can also be proposed by the executive and debated by legislative members who often amend it before passing it into law.
Government and legalisation are responsible for creating frameworks and rules for businesses to compete against each other on a fair ground. Now and then government changes frameworks and rules and this usually forces the businesses to change their operation ways. As a result, government and legalisation affects business policies. The main areas of government and legalisation affecting businesses are economic policies and legal changes.
A key area of government and legalisation policy is the role of the state in the economy given by the government. Taxation policies always affect the costs of the business. For example, rise on business profits has the same consequence as increase on the cost of production. Businesses always pass the higher taxation to the consumers and this usually affects the bottom line.
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