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Government regulates business for several reasons. First is public safety and welfare. Many industries are regularly reviewed and overseen because their activities, if they go awry, can have significantly harmful effects to human health, financial well-being, or community structure.

The second reason is protection of industry. Many regulations are in place to protect those who have developed their business correctly; licensing, permits, and inspections by the government weed out undesirables or criminal activities that undercut honest industries.

The third reason is revenue generation. Many programs require certification or licensing that businesses must pay for in order to operate. The funds collected go to pay for the government programs that perform the oversight of the particular industry. However, in many cases, some portion of revenue is also sidetracked to general government purposes and is, effectively, a tax.

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