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' role is to oversee businesses and ensure they follow rules. Encouraging business compliance fits this.
• Creating legislation is done by legislative bodies (like Congress), not regulatory agencies.
• Negative externalities (costs to third parties) are discouraged, not encouraged, by regulatory agencies.
• Creating new business opportunities is not a primary function of regulatory agencies; they focus on regulation, not business development.

Answer:

A. encouraging business compliance