Page 185 - Business Principles and Management

Unit 2

however, has a right to use public property for profit except
through a special grant by society. Cities often grant public
franchises to companies to operate bus lines, or to install elec-
tric power or cable for television. For example, as presented in
the story that started this chapter, Deion has a franchise from
his community to operate his taxi company.
PHOTO: © GETTY IMAGES/PHOTODISC. BUILDING CODES AND ZONING

Local governments regulate business through building codes,
which control the physical features of structures. Building codes
may specify such things as the maximum height, minimum square
feet of space, and the types of materials that can be used. Local
governments also regulate the types of buildings and where they
are built. Zoning regulations specify which land areas may be
used for homes and which areas may be used for different types
How could the concept of of businesses. A business must obey all local regulations relat-
information liability affect ing to zoning and construction.
the way in which a business
handles computer information?
CHECKPOINT

List three ways that local governments regulate business.

7.2 Assessment

UNDERSTAND MANAGEMENT CONCEPTS
Circle the best answer for each of the following questions.
1. A _______ allows an inventor the sole right for 20 years to make, use,
and sell an invention or a process.
a. patent
b. copyright
c. trademark
d. license
2. Business operations and transactions that cross state lines are called
a. interstate commerce
b. intrastate commerce
c. multistate commerce
d. national commerce

THINK CRITICALLY
Answer the following questions as completely as possible.
3. Describe how the federal government protects consumers of
goods and services.
4. Describe how local governments regulate businesses.

thomsonedu.com/school/bpmxtra

172