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The government formulates business policies. Hence, it directly impacts busines or any business related activity. Besides that, the government is also responsible for passing any tender or giving any license to carry out activities( eg export and import).

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17y ago
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13y ago

The government normally give tax cuts to help business. That means lowering the level of corporate tax a company pays. It can also give tax credits to companies that directly decreases the amount of tax it pays. It may also give subsidies, which are direct payments to compensate the businesses. For example, farmers get subsidies from the government as part of their income for producing agricultural products. The government will also relax certain regulations to make it easier for businesses to engage in certain trades. It may also help businesses with import and export by lowering tariffs. As well, the government can also lower interest rates to make it cheaper for business to borrow money to expand.

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Q: How do the government help out a business?
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