Question

which is a function of regulatory agencies?
encouraging business compliance
creating legislation for businesses
encouraging negative externalities
creating new business opportunities

Explanation:

Regulatory agencies aim to oversee and ensure that businesses operate within the law and ethical standards. They encourage compliance to protect consumers, the environment, and the overall economy. They do not create legislation (that's the job of legislative bodies), nor do they encourage negative externalities. Creating new business opportunities is not their primary function.

Answer:

encouraging business compliance