Can you please help me?!!! Do you know the meaning for this statement.?

Question

"For each benefit gained by regulation, there is a cost" what does this statement mean from business point of view!!

Thanks to all you guys...love u all!

Answer 1

there's a cost (usually financially) to regulating something.
If you make a rule, ostentatiously for the benefit of the company, then the cost is what it costs to make sure that rule is followed and the penalties for when its not.
for example, the new regulation....no internet at work, other than work related stuff. so now the company has to hire a person to monitor and probably a program (2 costs) then for anyone breaking the rule, those people have to face consequences (being written up aka boss' time he could be doing something productive - a cost, and maybe being fired, still boss' time, but now have to advertise a job opening, schedule and conduct interviews, more time, hire someone new and train that person, this being time and money. and these costs would occur everytime someone checked their email at work.)

so it comes down to a balancing act. is the increased productivity and professionalism from not spending personal time on the computer, going to outweigh the other costs involved in making sure that the employess do stay off the internet?

Answer 2

The cost is in regulation, in the lost freedoms that come with it. Higher regulation costs the businesses money to conform their operations with the regulations. Those costs make it more expensive to make the same amount of profit as before, so many businesses will cut back how much they produce, perhaps laying off people, so it costs the economy. It also costs the government (and thus the taxpayers) money to set up an office and to hire inspectors to enforce the regulations.

Answer 3

This statement is based on the theory that you can not get something for nothing. For every regulation that is passed that creates a benefit for a business (for example: the federal government puts a regulation into effect that states the federal government can not place restrictions on pricing of services provided by cable companies), there is an associated price to be paid for that new regulation that will harm the company (Now multiple companies can begin under bidding their services to prices with which you can not compete rather than pricing higher to increase profits.)

Answer 4

When a government passes new regulations, there are benefits, however, there is also a downside. For instance, a company may reap some financial or policy benefit through a government regulation, but they also may have extra paperwork to fill out, more outside inspections, or lose a few customers who are no longer legally allowed to purchase their product---whatever, the possibilities are endless.
To sum up, you have to take the bad with the good.

Answer 5

The quickest way to answer this is that anytime a government regulates a benefit (highway improvement, new storm drainage, hiring police and firemen as an example) the cost for that benefit has to come from somewhere (niothing is free) and usually in the form of higher or new taxes. If you examine bills for utilities for instance there itemized you see taxes and fees for various programs. Hope this helps.

Answer 6

I think it means that businesses working within the relevant regulations, rules or limitations specified legally, that gaining the necessary benefits of operating a business, it all comes with a price thats either a sacrifice to the business or costly in one or more ways.

Answer 7

The cost could be (a) the price that it takes to regulate and (b) the cost if the business is doing anything shady.

Answer 8

Rules and regulations that help a business can generate their own problems, usually in increased paperwork and record keeping. The cost may not be strictly financial, but certainly an investment in time and manpower.

Answer 9

It means that the regulations of the market (for example, price restrictions for some kinds of goods) made by government always have a bad influence on economy on the whole

Answer 10

For every rule that is put in place (the regulation), there is a cost (someone has to pay for it).

Say that a law passes that there's no dumping chemicals in the river. Well the business must now pay for proper disposal.