Regulated Business

Government regulation increases the risk to the underlying business and thus increases the risk factors. Government regulation can limit business growth and increase the risk of future cash flows. Should be conscience of government regulations and intervention of the industry. Regulation increases risk to a business by increasing future uncertainty. New rules, resulting in new expenses, may negatively affect the operations of a business.

Specific Company Comments:

Government regulation is always a issue with generic companies. The more government regulation, the higher that safety standards of products, but the lower output of new drugs, because government hurdles are too large.

Source: http://en.wikipedia.org/wiki/Government_regulation … "Regulated Business" has a significant impact, so an analyst should put more weight into it. This statements will have a short-term negative impact on this entity, which subtracts from its value. This qualitative factor will lead to an increase in costs. This statement will lead to a decrease in profits.