Question
Explain five roles played by licensing as a government regulatory tool.
Answer
- Licensing provides the government with a platform to monitor the type of goods moving in and outside the country.
- Through licensing the government can get the total number of businesses operating in the country
- Licensing is used by the government a tool to provide illegal business activities.
- Licensing ensures those professional standards as stipulated by the government are adhered to against which a license can be withdrawn for a business which does not stick to the standards.
- Ensures that business people do not provide harmful goods and services to the citizens.
- Ensures that there is a healthy competition between people involved in the same business activities.
- It is a source of revenue to the government.
- Through licensing the government can get the total number of businesses operating in the country
- Licensing is used by the government a tool to provide illegal business activities.
- Licensing ensures those professional standards as stipulated by the government are adhered to against which a license can be withdrawn for a business which does not stick to the standards.
- Ensures that business people do not provide harmful goods and services to the citizens.
- Ensures that there is a healthy competition between people involved in the same business activities.
- It is a source of revenue to the government.
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