What role do government agencies play in business law?

Government agencies play a crucial role in regulating industries and ensuring compliance with business laws. These agencies are tasked with the authority to create regulations that govern various aspects of business operations, including safety standards, environmental protection, labor practices, and consumer rights. By establishing these regulations, government agencies help to maintain fair competition and protect the interests of the public.

For instance, the Securities and Exchange Commission (SEC) regulates the securities industry and protects investors by enforcing compliance with securities laws, while the Environmental Protection Agency (EPA) oversees environmental regulations to safeguard public health and the environment. This regulatory framework ensures that businesses operate within legal boundaries, thereby fostering a stable and trustworthy market environment.

In contrast, the other options describe roles that are not typically associated with government agencies. While agencies may be involved in aspects like overseeing employee rights, they do not directly handle grievances between employees and employers. Similarly, creating new businesses or providing funding for startups is not a primary function of government agencies, although they may support entrepreneurship through policies or incentives.