Paper Example on Business Legal Issues

Introduction

The three most important legal issues that an entrepreneur should contend with are the company structure, how the company will address tax payment, and protection of the business in case of lawsuits (Krizan, 2011). The business structure is the most critical issue that an entrepreneur should consider before venturing into any business. The structure determines how any business is to be run, managed and amount of capital. The business structure could be sole proprietorship, corporation, partnership, and Limited Liability Company. These structures are different in complexity thus affect all business decisions and processes. Business structure, therefore, becomes the most critical legal issue when setting up a business.

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The way in which the company will pay taxes is the second most important legal issue. This decision assists because it advises the kind of business to set up depending on the business needs. The different business structures have different tax systems and requirement. The taxation of Limited Liability Companies is different from that of Corporations thus the way of paying taxes is important in setting up a business. It is also a way of legally abiding by the government laws. Tax payment is the second most important as it determines the business type and is a legal step towards forming a business.

Business protection is the other necessary legal issue to consider during setting up of a business. Businesses face much opposition, and it is a requirement that the legal department handling lawsuits should be in place (Krizan, 2011). A good plan is needed to avoid being caught up and rush at the last minute. This legal department can also be used to advise the business in legal matters and ensuring that the company runs on a legitimate platform. It is the third important as it helps the venture transact legally, and prepared in case of lawsuits.

Ethical Issues

The three most important ethical issues that an entrepreneur should consider are; ethical treatment of employees, quality in production and business transparency in meeting quotas (Vilcox & Mohan, 2007). Employees are the most critical asset in a business. Ethically all employees should be treated equally without any discrimination. Fair treatment of employees raises the employee trust, work harder and improve employee morale. Fairness is the most important ethical issue as it enhances the company name and ensures that employees work voluntarily without pressure.

Transparency is the second most important ethical issue. Through openness, a business is in a position to earn trust from all stakeholders and having a strong brand. The decision on business quotas is essential at the beginning of the venture. It is thus reasonable to conduct and run the business on transparency ensuring that the business books of accounts are always correct. This issue is the second important as it builds trust in the business environment and provides that the business brand is strong.

Quality production is an issue that an entrepreneur must consider at early business stages. The main aim of setting up a business is profit maximization. However, this should not affect the quality of production. Good quality ensures that the firm retains customers and the customers' confidence increases. A business that prioritizes quality has a competitive advantage over its competitors (Vilcox & Mohan, 2007). Quality becomes the third most important ethical issues as it shows the company cares about its customers. It also creates confidence in customers and gives the business a competitive advantage.

Social Responsibilities

The three most important social responsibilities are running the business as green, what the company should give back to the society and the life quality given to the employees (Hopkins, 2007). Environmental conservation is an essential responsibility that a business should address. Before setting a business, it is necessary to make plans on how to conserve the environment and engage in activities to maintain the environment. It ensures that the business runs on legal, environmental laws. Conservation is the most important responsibilities as it ensures that the business takes care of the environment and maintains the state of the environment.

The decision on giving back to the community is vital at the set up of the business. A business should appreciate the community that hosts it by giving back to it through some activities. It could involve cleaning the environment and helping the poor around its operations. This responsibility enables the people around the business to gain confidence and supports its operations. It is the second most important responsibility as it helps the business have the support of the community.

Employees are essential to any business as they are responsible for making things done. It is, therefore, the responsibility of the business to appreciate its employees. Employee appreciation is critical in ensuring employees work to their expectation, quality production, and employee confidence in the company (Hopkins, 2007). Through employees, a company can meet its expectations and achieve success. When employees are treated well, they assist market a business. It is the third important responsibility as it shows a company ready to appreciate and respect its employees.

References

Hopkins, M. (20007). Corporate social responsibility and international development: is businessthe solution? London: VA: Earthscan.

Krizan, A. C. (2011). Business communication. Australia: South-Western Cengage Learning.

Vilcox, M. W., & Mohan, T. O. (2007). Contemporary issues in business ethics. New York: Nova Science Publishers.