Question

When Microsoft was founded, the company devoted very few resources to lobbying activities. After a high-profile antitrust case against it, however, the company began to lobby heavily. Why does it make financial sense for companies to invest in lobbyists?

Short answer

It makes financial sense for companies to invest in lobbyists because they study every word of laws and regulations.

Step-by-step solution

Step 1. Special Interest Groups.

Special interest groups are groups of individuals with similar interest who come together to organize and influence the polcies in the area of their interest.

Step 2. Companies to invest in lobbyists.

It makes financial sense for companies to invest in lobbyists because they study every word of laws and regulations. They suggest legislators for change in laws and regulations. It indicates smart business.