Question

which is a function of regulatory agencies?
○ encouraging business compliance
○ creating legislation for businesses
○ encouraging negative externalities
○ creating new business opportunities

Explanation:

Regulatory agencies oversee businesses to ensure they follow laws/regulations. Creating legislation is done by legislative bodies (not regulatory agencies). Encouraging negative externalities is against their role (they aim to reduce such). Creating new business opportunities is not a core function of regulatory agencies; their main role is oversight and ensuring compliance. So "encouraging business compliance" is the correct function.

Answer:

A. encouraging business compliance