Chao sells custom bicycles. He buys several bike parts including wheels and tires from Upright Strides, Inc. Although several government-supported regulations help Chao in his business, regulations that make it easy for his business to enjoy good vendor relationships are
A) lower taxes that business-to-business customers pay to each other.
B) laws that permit minimal corruption in banking institutions.
C) laws that permit small businesses to use the government as an intermediary when doing business with other small businesses.
D) laws that support enforceable contracts between firms.

Question

Quizplus · Accepted Answer

Without enforceable contracts between firms, small and large businesses cannot efficiently conduct business. The government can lessen the risks of entrepreneurship by passing laws that enable people to write good business contracts that are enforceable in court.

Chao Sells Custom Bicycles