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Extra resources for ACCA - P1 Professional Accountant: Study Text

Example text

Addressing quality and safety issues and considering the social implications of service provision and pricing. 2 Costs of regulation The potential costs of regulation include the following. (a) (b) (c) Enforcement costs Regulation can only be effective if it is properly monitored and enforced. Direct costs of enforcement include the setting up and running of the regulatory agencies – employing specialist staff, monitoring behaviour, prosecuting offenders (or otherwise ensuring actions are modified in line with regulations).

In some cultures, insects are eaten; in others, not. How would your views differ if you believed, as is the case in some religions, that animals contain the reincarnated souls of dead people? 1: Scope of corporate governance ⏐ Part A Governance and responsibility • How would your view change if you believed that, like humans, some animal species are able to 'learn', exhibit altruistic behaviour, and that our sense of right and wrong results from evolutionary adaptation of the social behaviour patterns of our primate ancestors?

A) (b) (c) Enforcement costs Regulation can only be effective if it is properly monitored and enforced. Direct costs of enforcement include the setting up and running of the regulatory agencies – employing specialist staff, monitoring behaviour, prosecuting offenders (or otherwise ensuring actions are modified in line with regulations). Indirect costs are those incurred by the regulated (eg the firms in the industry) in conforming to the restrictions.

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