This lesson on complying with government regulations, the 10th in a series of 18 units, is part of the first level of a comprehensive entrepreneurship curriculum entitled: A Program for Acquiring Competence in Entrepreneurship (PACE). (Designed for use with secondary students, the first level of PACE introduces students to the concepts involved in entrepreneurship and helps them become aware of entrepreneurship as a career option.) The following topics are included in the unit: the importance of government rules and regulations to the individual entrepreneur; legislation designed to protect employees, the environment, and consumers; and federal, state, and local taxes affecting small businesses. Included in the lesson are instructional text organized in a question-and-answer format, individual and group learning activities, a case study, and assessment questions. (MN)