legal environment of business
DESCRIPTION
People living in an organized society have to follow certain common rules and the state has to enforce these rules. Law is the sum of these rules which regulate the life of people. Otherwise, peaceful living is impossible.TRANSCRIPT
Legal Environment of business
Prepared By Manu Melwin Joy
Assistant ProfessorIlahia School of Management Studies
Kerala, India.Phone – 9744551114
Mail – [email protected]
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What is business?
• Development• Provide things to enjoy life• Productive utilization of wealth
producing resources. • Leads to innovation and
improvements in production process- enriches the life.
• Today Business Enterprises dominate our lives.
Power of business
• The wealth of a country is, to
great extent, is created and
controlled by BUSINESS.
• This gives business and
executives thereof the
‘enormous power’ to affect the
lives of different segments of
society, such as customers,
employees, shareholders , etc.
Business environmentBusiness environment means the
sum of all external forces and
conditions that influence business
and potentially affects its
performance which includes
economic factors, socio-cultural
factors, politico-legal factors,
technical factors and international
factors .
Relationship b/w Business and its Environment
• Various interest groups: Consumers , Employees, Owners, Creditors, Suppliers, Distributors, Competitors, the Governments, etc.
• Survival and Growth of business will depend upon its relations with all these interest groups.
• Law and business are closely related disciplines (complementary)
Importance of law
People living in an organized
society have to follow certain
common rules and the state has
to enforce these rules. Law is the
sum of these rules which
regulate the life of people.
Otherwise, peaceful living is
impossible.
Definition of law
According to Holland,
“Law is a rule of external
human action enforced
by a sovereign political
authority”.
Elements/Characteristics of law
This definition states that,
following elements should be
available in a law
– A body of rules.
– External acts of human being
governed by rules.
– A sovereign political authority
enforcing rules.
• What is business?• Power of business.• Business environment.• Relationship b/w business and environment.• Definition of law.• Characteristics of law.