Business Law Summary
Chapter 1: The regulatory environment 1.1 Company and environments Transformation ‐ combining resources to create products and services Conversion – the process, in a regulated environment, of changing money into resources and products and services into money Regulation – the rules which control behaviour Stakeholders – individuals and groups who may affect or be affected by the actions, decisions, policies, practices or goals of an enterprise PESTLE – Political, Economic, Social cultural, Technological, Legal, Environmental or Ecological 1.2 Law Law – the total of rules at a certain point in time within a territory and or market, which companies and stakeholders must or can implement and which are created and enforced by bodies with the authority thereof Positive law – the sum of all legal rules in effect Jurisdiction – the geographical area over which an administration exercises legal authority Mandatory legal rules – the law does not allow any deviations (must) Supplementary law – applies only when parties do not arrange otherwise (can) Legal subjects – means that human beings and business entities are subject tot the law Legislature – the state’s bodies with legislative authority Legal system – the total of all legal rules and institutions involved in creating, interpreting and enforcing the rules 1.3 Business ethics Ethics – comprise the moral and value standards that act as behavioural guidelines Business ethics – studies ethics within a business and company setting Corporate culture – reflects the values, beliefs, assumptions and symbols that define the way in which the organization conducts its business Code of conduct – an agreement or set of rules not imposed by law, regulation or administrative provision which defines the behaviour of one or more companies who undertake to be bound by the code in relation to one or more particular commercial practices or business sectors 1.4 Law versus business Law Business