Question

The government ___ be a partner in the same way that private parties can form a commercial partnership; common practices like combining financial and personnel resources, sharing losses and exchanging assets are generally ___ by federal statute.

a) must, regulated
b) may, encouraged
c) cannot, prohibited
d) should, limited

Answer 1

The government cannot participate in commercial partnerships like private entities, as this practice is generally prohibited by federal statute, even though the U.S. government does regulate businesses through various laws and regulations.

Step-by-step explanation:

The question you've posed revolves around whether the government can participate in a commercial partnership in a similar manner to private entities. The most suitable answer would be (c) cannot, prohibited, which means that the government cannot be a partner in the same way that private parties can form a commercial partnership; common practices like combining financial and personnel resources, sharing losses, and exchanging assets are generally prohibited by federal statute.

Despite the U.S. being a capitalist country, the government does regulate private businesses to some extent. This includes taxes, regulations on wages, environmental protection guidelines, and financial rules for banks and investment firms. In a market-oriented economy, certain activities are subject to government approval, such as mergers, but the overall freedom to operate remains predominantly with private firms.