Running a business

Every year there is an increase in the number of lawyers, and legal cases in the courts. To a large extent, this increase is due to the economic growth in the world; more business means more transactions, more possibilities for conflict and confusion, and, consequently more legal activity to regulate business. If you set up business, even a very small one, you will be buying and selling products and services, and perhaps, employing people, buying or renting land, and borrowing money. In order to engage in all of these activities, you need to have some knowledge of basic legal principles such as contract, tort, and land law. And you will need to know about any laws specifically relevant to your kind of business, such as statutes regulating companies. If you do not run your business honestly you may also need a knowledge of criminal law!

Nearly every general area of the law is relevant to running a business, and nearly every country has its own set of laws designed specifically to regulate business. Throughout the world, most businesses face similar problems; they must determine their organizational form; duties to clients; investors and employees; tax liabilities; and ability to minimize losses if the business fails.

1. Why is the number of legal cases in the courts increasing every year? Give real-life examples.

2. What similar problems do most businesses face? Can your think of other problems?

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