Business Regulations, Labor Laws, and Cash Flow Essentials

Economic Impact of Monopolies

Monopolies cause a lot of harm to an economy as there is nobody to compete against them. In some countries, monopolies are banned, so they have to break up into smaller companies.

Protecting Employees in the Workplace

Employees need protection in several key areas to ensure fair treatment and safety.

Anti-Discrimination Laws

Protection is required against unfair discrimination at work and when applying for jobs for those who:

• Are of a different race
• Belong to a different religion
• Are of the opposite sex
• Are considered too old or too young for the job
• Are disabled in some way

In most countries, these forms of discrimination are illegal. In the UK, for example, these are governed by acts established by Parliament.

Health and Safety at Work

Laws have been established to:

• Protect workers from dangerous machinery
• Provide safety equipment and clothing
• Maintain reasonable workplace temperatures
• Provide hygienic conditions and washing facilities
• Ensure shifts are not excessively long and provide breaks

Protection Against Unfair Dismissal

Workers are protected from being fired for reasons such as:

• Joining a trade union
• Being pregnant
• When no warnings are given before dismissal

If a worker feels that they have been unfairly dismissed, they can take their case to an industrial tribunal. After listening to both sides of the argument, the tribunal will decide whether or not to grant the worker compensation.

Wage Protection

• Employers must pay their employees the amount stated in the contract of employment (including the wage rate, frequency of payments, and deductions).
• In many countries, a minimum wage is established by the government, making it illegal for an employer to pay an hourly rate below the minimum set.

Government Influence on Industry Location

Owners will want their business in the best possible area; however, governments influence these location decisions to:

• Encourage businesses to set up and expand in areas of high unemployment.
• Discourage firms from locating in overcrowded areas or in naturally beautiful places.

Measures for Controlling Location

• Planning controls: These legally restrict business activities in certain areas.
• Regional assistance: These measures encourage businesses to locate in specific parts of the country.

Understanding the Break-Even Graph

Defining Cash Flow in Business

The cash flow of a business consists of the cash inflows (sums of money received by a business during a period of time) and outflows (sums of money paid out by a business during a period of time) over a specific duration.