Which is a function of regulatory agencies?

a. encouraging business compliance

b. creating legislation for businesses

c. encouraging negative externalities

d. creating new business opportunities

The correct answer would be option A, Encouraging business compliance.

Explanation:

A regulatory agency is an agency which ensures the law enforcement, enforcement of government control and restriction on activities conducted by the public sector.

So a Regulatory Agency encourages business compliance. Business compliance is the check on the companies to see how well they are following the laws and regulations in conducting its business. There are different laws for different industries. But Regulatory Agencies see every company to encourage business compliance whatever industry the company is in.