This refers to rules established at some level of government for the purpose of guiding business practices. Although it is commonly accepted that some guiding rules are benefitial to encourage competiton and promote the public good, it is also commonly accepted that it may increase the cost of doing business.

Roberto and reagan are both 25 percent owner/managers for bright light inc. roberto runs the retail store in sacramento, ca, and reagan runs the retail store in san francisco, ca. bright light inc. generated a $125,000 profit companywide made up of a $75,000 profit from the sacramento store, a ($25,000) loss from the san francisco store, and a combined $75,000 profit from the remaining stores. if bright light inc. is an s corporation, how much income will be allocated to roberto?