Role of Government in Commerce

The government is the body of persons who rule the country.

The main functions of the government are:

  1. Protective function –Maintaining peace and security in the country and protect the country against external aggression.
  2. Social functionProvides social services are vital for the welfare of the society
  3. Development function –The government develops irrigation transport & communication, industrial agricultural systems of the country for the rapid increase in the rate of economic growth.

The government is involved in business activities in two ways:

  • Directly i.e. establishment of public corporation, parastatals, local bodies etc.
  • Indirectly i.e. control the activities of the private business enterprise to ensure the production of high standard goods and protect the interest of consumers.



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