Which of the following is an advantage that self-regulatory agencies such as the BBB and the NARB have over governmental laws and regulatory agencies?
A) Firms must strictly abide by the rulings of self-regulatory agencies.
B) Establishment and implementation are usually less expensive.
C) They have better tools to enforce their rulings.
D) Guidelines are often stricter and create greater compliance from firms.
E) Money is very rarely an issue in enforcing decisions of self-regulatory agencies.

Question

Quizplus · Accepted Answer

Self-regulatory agencies such as the BBB and the NARB have a lower cost of establishment and implementation than governmental laws and regulatory agencies. This is because they are not funded by tax dollars and their operations are supported by fees paid by members of the industries they regulate.

Which of the Following Is an Advantage That Self-Regulatory Agencies