Which factor could negatively affect business operations according to government actions?

Rising costs due to regulation can significantly impact business operations by increasing operational expenses. Regulations may require businesses to invest in compliance measures, such as updating facilities to meet health and safety standards, securing licenses, or paying fees associated with regulatory compliance. These additional costs can strain resources, particularly for small businesses that operate on tighter budgets. When expenses rise, businesses may be forced to increase prices for their products or services, reduce employee wages, or cut back on investments in growth and innovation. Consequently, regulatory costs can create a challenging environment for businesses, leading to decreased profitability and operational efficiency.

In contrast, the other factors listed typically support or bolster business operations rather than detract from them. Increased funding for infrastructure can enhance operational capabilities, protection of intellectual property safeguards a company's innovations, and encouragement of new business startups fosters a competitive market, all of which generally lead to positive outcomes for businesses.