Which of these is NOT a reason for regulating businesses?

Prepare for the ACA ICAEW Tax Compliance Exam. Study with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

Regulating businesses typically aims to create a framework that supports ethical practices, protects stakeholders, and promotes fair competition. The correct choice indicates that fostering illegal market practices is not a legitimate or recognized reason for regulation.

Regulatory frameworks are established to ensure that businesses operate within certain guidelines that promote honest dealings and protect consumers, employees, and the environment. In contrast, the other options represent valid motivations for regulation. Enhancing opportunities often involves creating a business environment that encourages innovation and fair competition. Protecting the public interest is a foundational principle of regulation, ensuring that businesses do not exploit consumers or harm the public. Managing externalities refers to addressing the unintended side effects of business activities, such as pollution, which can have significant social and environmental consequences.

Thus, the option that asserts fostering illegal market practices does not align with the core objectives of regulation, reinforcing why it is the correct answer in this context.

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