Introduction The government and business participate in the process of executing their respective economic roles. The government plays the role of governing by controlling and directing people on how to carry out their economic activities. The administration controls and guides various state parties or persons who have the power of developing the courses of action. Business entities constitute one of the parties within a state, which the government has a share in their operations. Business entities encompass all organizations that engage in the trading of goods and services. Governments and business entities demonstrate a mutual relationship. Businesses thrive in environments in which the government has established policies to guide their conducts through the enactment and development of authoritative rules or a condition that customarily governs behavior while not curtailing businesses’ fundamental freedoms. For example, businesses must serve the interests of the communities. Thus, the government ensures equal public participation in business processes. Should the government engage in the regulation of all businesses, including their decision-making process and the setting of their policies? This paper addresses the role of government regulation on businesses. The goal is to determine whether businesses should operate as free entities by ensuring deregulation. The Role of the Government in Regulating Businesses The government plays a proactive role in ensuring a fair play of businesses in the process of executing their functions. In all markets, the government regulates the conduct of business players. Indeed, even in liberalized markets, businesses should be monitored to avoid unethical practices among the competing entities. The government safeguards the environment, promotes fair labor practices, and/or guarantees healthier working conditions while at the same time setting the minimum wage for workers. Businesses also have a responsibility of developing their self-regulatory models. However, the government should play the ultimate role in ensuring that the set standards are met and that all stakeholders operate within the laid down regulations. Organizations are established to perform different functions depending on whether they are profit-making or non-profit-making entities. For profit-making organizations, their strategies are developed consistently with the profit maximization behavior in mind. Thus, business strategies are formulated in accordance with the need to enhance the performance of a firm in the short and long term. Rumelt, Schendel, and Teece (2009) provide evidence for this assertion by claiming, “As never before, strategic management academics have adopted the language and logic of economics” (p. 5). The magnitude of profit is one of the most crucial parameters to measure business performance. In this context, neoclassical economics firms are characterized by profit maximization. Such firms make products through the deployment of cost-analysis formulas that ensure that marginal revenues are equal to marginal costs. While increasing profit levels, minimal costs should be less than marginal revenues. Without appropriate regulation, the profit maximization behavior may be explore