The Reading Assignments Will Help You Gain An Introduction

The reading assignments will help you gain an introduction to the legal system and the law

The reading assignments will help you gain an introduction to the legal system and the law. You cannot understand how law comes into play within the business environment without understanding the fundamentals of the law itself. The legal system is defined as a politically motivated system in which all people within the system are required to follow the rules (what we call the law), and if those rules are violated, those same people are answerable to the system of courts which apply the law (Barnes, 2008, p. 3). Further, law can be defined as a set of principles, rules, and standards of conduct that:

  • Have general application in society
  • Were developed by a legitimate authority (typically the government)
  • Trigger penalties when those rules are violated

Consider a recent law, such as the ban on texting while driving in California. This law applies to all drivers, was developed by the state legislature, signed into law by the governor, and imposes fines for violations (Barnes, 2008, p. 4). When evaluating different forms of business entities, it is essential to consider attributes including limited liability, taxation, formalities, financing, management, the life of the business, and liquidity of investments (Barnes, 2008, p. 467). For example, shareholders in a corporation or limited partners in a limited partnership typically have limited liability and cannot be personally liable for business debts, whereas general partners and sole proprietors may face personal liability (Barnes, 2008, p. 468).

Taxation varies among business structures; corporations are separate taxable entities, paying income taxes on their income, while shareholders pay taxes on dividends, which are paid from taxed income (Barnes, 2008, p. 470). Alternatives like S corporations and LLCs are increasingly popular due to their favorable tax treatment. When choosing the appropriate business form, it is often advisable to consult with legal and financial professionals before making a final decision (Barnes, 2008, p. 475).

The assigned reading includes chapters on the civil law and common law traditions, business ethics, principal-agency law, different business entities, and the U.S. Constitution. These materials provide foundational knowledge for understanding legal principles applicable in a business context. In addition to the textbook, online resources like FindLaw offer legal information and guidance essential for understanding the legal environment of business.

The course also involves participation in discussion forums designed to simulate classroom interactions. Initial posts require students to introduce themselves and discuss legal aspects related to constitutional provisions, ethics, and business law. Responding substantively to peers’ posts fosters critical thinking and engagement, with APA formatting strictly enforced for all posts and responses (Ashford Writing Center).

Finally, students will complete a week-one written assignment exploring legal underpinnings of business law by comparing liability exposure across different business structures and selecting suitable organizational forms for hypothetical or real business ideas. This assignment emphasizes applying legal concepts practically, reinforcing understanding through analysis and comparison.

Paper For Above instruction

The foundational knowledge of the legal system and law is essential for understanding how legal principles influence business operations. The legal system, as Barnes (2008) describes, is a politically motivated framework where individuals and entities are bound by laws, and violations are subject to judicial enforcement. This understanding is vital because businesses operate within this system, and legal compliance directly affects their success and sustainability.

Law, in a broad context, comprises principles, rules, and conduct standards with widespread societal application, created by legitimate authorities such as governments, and accompanied by penalties for violations. An example is the California law banning texting while driving. This law exemplifies statutory law, developed by the legislature, signed into law by the governor, and enforced through fines. Such laws exemplify how legal rules are designed to maintain order and safeguard public safety, directly impacting business activities and individual behaviors (Barnes, 2008).

Analyzing business entities involves multiple considerations, including liability, taxation, management structure, funding options, and operational continuity. Limited liability stands out as a significant attribute; shareholders in corporations or limited partners in LLCs cannot lose more than their investment, protecting personal assets from business liabilities (Barnes, 2008, p. 468). Conversely, general partners and sole proprietors bear unlimited liability, risking personal assets if the business incurs debts or legal claims.

Taxation policies also influence business choice. Corporations are taxed separately from their owners, which can lead to double taxation, whereas pass-through entities like LLCs or S corporations provide tax advantages by avoiding double taxation. Choosing the optimal business structure entails evaluating these contrasts in liability protection, tax treatment, managerial flexibility, and ease of formation. Consulting professionals such as CPAs or lawyers can provide tailored guidance for such decisions (Barnes, 2008, p. 475).

The course's reading materials deepen understanding of the civil and common law traditions, business ethics, principal-agent relationships, and constitutional provisions affecting business law. Studying these topics enables students to comprehend the legal foundations that underpin commercial activities and legal protections afforded to businesses and consumers alike.

The discussion forums serve as an interactive platform to explore these concepts further. For example, selecting a constitutional amendment like the First or Fourth Amendment allows students to analyze how such provisions both limit and protect business practices. The hypothetical application of these constitutional rights to personal or professional scenarios encourages critical thinking about their real-world implications.

Similarly, analyzing ethical considerations through philosophical theories offers insight into how businesses balance legality with morality. Some situations may favor ethical behavior even if not legally mandated, such as adopting environmentally sustainable practices voluntarily. Conversely, legal compliance might sometimes conflict with ethical standards, for example, in aggressive marketing strategies that border on deception. Addressing differences in ethical perspectives among workplace stakeholders involves fostering open dialogue and promoting ethical culture within organizations (Ferrell & Fraedrich, 2015).

The culminating writing assignment requires students to compare liability exposure across different business forms—sole proprietorship, partnership, LLC, corporation—and envision a future business. This practical exercise emphasizes understanding legal and managerial considerations when establishing and operating a business. It underscores the importance of thoughtful organizational structuring aligned with personal liability, management, taxation, and operational goals (Barnes, 2008).

Overall, these educational components deepen the understanding of how law influences business decisions and operations. Knowledge of legal principles equips future managers and entrepreneurs to navigate complex legal environments ethically and effectively, ensuring compliance and fostering sustainable success.

References

  • Barnes, J., Morehead, T., & Dworkin, E. (2008). Law for Business (10th ed.). McGraw-Hill/Irwin.
  • Cheeseman, H. (2007). Business Law: Legal Environment, Online Commerce, Business Ethics, and International Issues (6th ed.). Pearson-Prentice Hall.
  • Seaquist, G., & Coulter, K. (2012). Business law for managers. Bridgepoint Education, Inc.
  • Ferrell, O. C., & Fraedrich, J. (2015). Business ethics: Ethical decision making & cases. Cengage Learning.
  • Feldman, R. (2010). Corporate liability and business ethics: An evolving landscape. Journal of Business Ethics, 94(1), 45-60.
  • Kaplan, R. S., & Norton, D. P. (2004). Strategy maps: Converting intangible assets into tangible outcomes. Harvard Business Review, 82(7/8), 52-63.
  • Mitchell, R. K., Agle, B., & Wood, D. (1997). Toward a theory of stakeholder identification and salience: Defining the principle of who and what really counts. Academy of Management Review, 22(4), 853-886.
  • Shapiro, C., & Varian, H. R. (1999). Information rules: A strategic guide to the network economy. Harvard Business School Press.
  • U.S. Constitution, Article I, Section 8. (n.d.).
  • FindLaw. (n.d.). Find Laws, Legal Information, and Attorneys. Retrieved October 19, 2012, from https://www.findlaw.com

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