How is regulation defined?

Regulation is defined as a law created by the government or an authoritative body that is designed to control or govern conduct within a particular area. It is typically put in place to ensure that businesses and entities operate within the boundaries of the law and maintain standards that protect public interests, such as health, safety, and the environment.

Regulations are often more detailed than statutes, providing specific guidelines or procedures that must be followed to comply with the overarching law. This formal structure is crucial for maintaining order and accountability in various sectors, including finance, healthcare, and environmental management.

The other options do not adequately reflect what regulation is. Guidelines set by businesses pertain to internal policies rather than external legal requirements. Recommendations from industry leaders are voluntary suggestions, lacking the enforceability of regulatory laws. Informal agreements between companies might address mutual interests but do not have the same legal standing or regulatory power as laws enacted by the government.