5.1 Reasons For Regulations

5.1.1 Impact of business decisions on people, the economy and the environment
Explain why intervention in business activity is required so that social and economic objectives of the state can be better achieved • Give examples of intervention both to support and control the impact of business activity on people, the economy and the environment • Use the examples to show how outcomes differ [following intervention] and are more in line with the objectives of the state e.g. to create employment, minimise resource depletion Show an awareness of how business decisions have an impact on others (society, environment and people) • Use examples to show how business decisions create externalities Show an awareness of the main methods of government intervention • Show awareness of the main methods of intervention such as legislation • Show awareness of the influence of other agencies such as trade unions and pressure groups • Knowledge of specific legislation or specific pressure groups is NOT required