Develop economic policies and implement corporate legislation
Establish gov bodies that ensure businesses act within the law → impose penalties for noncompliance
Influence on financial management
Legislation will influence the decisions businesses make about their finances
Businesses need to ensure they comply with legal obligations
Legislation impacts on the choice of legal structure as different obligations are imposed on different types of businesses
If businesses don’t comply with regulations, ASIC can pursue a range of remedies (penalties such as fines or imprisonment) which will influence a business’ finances
