In today’s almost borderless business environment, understanding the organization’s rights vis-à-vis its employees, clients, vendors, government, etc., will go a long way to making better, more informed, and profitable business decisions.
Business law, also known as mercantile law or commercial law refers to a set of laws that govern the dealings regarding commercial matters, namely business organizations. It encompasses all laws that guide on how to set up a business and then how to run it. This includes all the laws that govern on how to set up, start, manage, run, close or sell a business. It includes contracts, laws of corporations, other business organizations, commercial papers, income tax, secured transactions, intellectual properties, and other transactions and dealings related to the business.
Even for mid-sized companies, having legal teams in place to cover every eventuality may for practical purposes be out of the question. And in any case, considering the fact that most organisations these days operate multinational, legal costs can have a considerable impact on the company’s bottom line, so managers do need to have at least basic training in Law.
Basically, business law is a set of guidelines that all businesses should consider to guarantee that business transactions are done fairly and with knowledge of what’s going on. Business law can help business owners avoid legal disputes or mishaps that might otherwise have happened without their knowledge and which could’ve been costly to the business owner in terms of time, money, and resources.
A Universal set of standards
Earlier, the customer had to suffer a lot due to the absence of a proper law that could safeguard their interests and money invested in a particular business. As there was no such law regarding maintenance of order, rights, and liabilities, etc., the business owners made their own standards and made the customers suffer just because of the greed to make more money. With the establishment of business law, many standards have been established which have to be followed by businesses worldwide.
Presence of Ethical conduct
With the help of business law, business owners may make better decisions, and also know when to seek legal help. Every business has to maintain an ethical conduct but most businesses, in the greed to earn more profits; do not follow such conducts. Business law makes it mandatory for all the businesses to maintain an ethical conduct which in turn pleases the buyers and they form a good image of the business.
Research oriented
To start your own venture, you will need to research a lot of things like office space, competitors, specialties, marketing plans, etc. You will need to conduct a thorough analysis on a variety of factors to determine whether you are making a long-term business decision. Thus, good research skills ensure that you are making decisions based on accurate and relevant data. Since the foundation of the research style is laid in the law graduate right from the beginning, even as an entrepreneur he/she does extensive research before taking any action which ultimately benefits their start up.
Maintenance of Equilibrium
This creates a sense of satisfaction among customers. In the absence of the law, different countries had different laws regarding the business dealings which made it difficult for the customers as well as the seller to establish a deal. But now every country has the same standards, and the deal between buyer and seller is easily established. This brings ease in business dealings and transactions all across the globe.
Less chances of frauds
Business law helps the owners itself to get aware of the laws against other businesses and individuals. It also helps the individuals, to be aware of the rights against the businesses so that they can use them in case they fall prey to the frauds and misery of the business.
Ability to devise a strategy
While making strategy for business you have to consider many things including important business details like- location, specialty, marketing etc. Also, since you have limited funds to invest in the beginning, there is a need to strategize about budgeting and finances to ensure that the capital is utilized in such a way that ensures the effective growth of business. A solid business strategy is vital to the success of a business, especially in the early stages. So just as you devise a strategy to win your case, create a business strategy that will take your business from start-up to success.
An entrepreneur won’t succeed with just “good ideas”. They also have to be very aware of what makes a business work: both the logistical and legal aspects of things. Overlooking this simply spells major trouble later, so if you’re planning to start a business of your own, make sure that it’s completely within the law.
