Page actions Read View source History. Legal factors affecting business See also STEEPLE analysis Ethical factors affecting business Industry environment Political factors affecting business Economic factors affecting business STEEP analysis International marketing research Regulatory data Economic factor Legal factors affecting business include all regulatory and law determinants that can negatively or positively affect results of market actions and decisions of management of company functioning in particular country.
Legal factors connected to tax and customs regulations country tax code may be different in every country served by business , tax restrictions for particular types of business, export and import restrictions, tax relief for some types of products or businesses promoting development, taxes and customs imposed on consumed goods may influence demand , individual income tax, corporate income tax, overall tax and fiscal policy excise duties ,.
Category : Strategic management methods. Tools Upload file Special pages Page information. Wiki tools Wiki tools Special pages. Such regulations determine lawful dealings with the investors if the owner goes for an investment loan. A promissory statement to the investor involves federal norms and security laws. In a limited liability company, securities law is a predominant factor as it involves third party investment procedures. To ensure the authentic transaction and smooth debt repay, securities law is necessary.
There are federal regulations to protect the labor interests in business industries. This is one prominent legal factor affecting business. These employment protection and labor laws determine the following parts. For better understanding about the labor laws in the US, business owners can refer to the United States labor laws. Consumer protection law connects the legal thread between the business and the consumer. Through this regulation, business owners are liable to face legal issues if they get into fraudulent dealings with the customer.
The Legal Information institute has a thorough guide on consumer protection acts in commercial fields. Following are the 4 branches of this law.
Intellectual property laws protect the patents and copyrights of a particular business. This is one of the most prominent legal issues affecting businesses.
Violation of these laws can lead to serious legal hazards. Intellectual properties for a business include logos, domain names, business names, symbols, or specific illustrations. If a company uses any of these intellectual properties of another company without prior legal procedure, then the later one can strike copyright violation charges on the former company. For further knowledge on intellectual property laws, owners should consider visiting the US Patent and Trademark Office.
This is perhaps the most crucial legal factor affecting business. Organizational law implements when a business is at the planning stage. This law determines the operational structures of a business that is yet to launch. When a business structures, it must get a legal entity that needs to comply with state laws. These legal entities can be of the following types. Any business entity is liable to pay taxes based on its location and revenue earnings.
Violating tax regulations can end the future of the business. Hence, it is another crucial legal factor affecting business. Tax norms differ from state to state. Some states have more flexible taxation rules than others. Tax filing involves the owner to obtain an Employer Identification Number.
Tax responsibilities for a business owner include the following taxes. When a company hires employees, it must ensure the safety and health facilities for them.
Health and safety regulations include legal attributes that help employees to go ahead with legal proceedings if the company fails to provide required safety and health facilities. These norms include the following. These are some of the prominent legal factors that can affect businesses to a great extent.
Business owners must consider these legal checkpoints while proceeding with their business ventures. Laws are made to protect a nation and its people from unfairness and anarchy.
The legal factors consist of organizational law, employment law, consumers law, advertisement law, product and service standard law,banking law, Anti-trust law and intellectual properties law. This law is the primary law for every business to come into existence. Organizational law manages the creation, operation, and termination of a business. Employment law or labor law determines the wages, working hours, work environment, relationships, etc. Every business has one common goal that is selling or providing consumers with their necessities in forms of goods and services.
It helps to reach as many people as possible, both nationally and internationally. But some businesses use advertisements to misguide consumers.
Also, in many countries, there are some restrictions for specific product ads, such as cigarettes. Violation or inappropriate activities or messages are also forbidden to use in advertisements. A business must remember these rules before starting any promotional campaigns.
Businesses need to meet those standards to launch their products in the market.
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