Bureaucracies were established to be an extension of the government, whereas they execute a specific task or tasks. They act as the agent in a principle-agent relationship because they carry out the request or commands of the government (principle). Through administrative adjudication and rule making, bureaucrats play an essential role in establishing laws, hence making them a powerful entity when implemented correctly. Furthermore, the legitimacy of a bureaucracy can be confirmed by being a liaison to the legislative branch. Federal regulations are in place to ensure establishments adhere to the rules set forth by the government. In the event bureaucracies fail to comply with the law, they risk fines and possibly harsher penalties such as