Business Decisions

Learning Objectives

To discuss the reasons for failure of the market system, To examine various forms of government intervention, To delineate the role of government in a modem economy, To analyze the impact of governmental intervention on managerial decisions, To evaluate the legislations in India that influence business decisions. 

Introduction                  

Government sets the ground rules for the society in general and economic activity in particular. Government controls and regulates the private business decisions directly and indirectly to achieve the goals of efficiency, stability, growth and economic justice.

We will build a case for intervention of government in the market process on the basis of failure of the free market system. This will be followed by analysis of methods adopted to regulate a modern economy. Next, an evaluation of major legislations enacted in India to regulate private business will be undertaken. 

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