Business law is a broad area of law that covers the basic concepts that comprise the most common activities in which businesses participate, such as forming and enforcing contracts, purchasing and selling goods and handling various forms of commercial paper and negotiable instruments. Business law also governs the formation and organization of all forms of enterprises as well agency issues that arise as businesses develop, and even bankruptcy proceedings that transpire when businesses fail. There are many factors that companies and organizations face as they enter the bustling and competitive world of commerce, such as the ethical obligations they must uphold, the criminal liabilities they face and the many issues that develop relating to their management and administration. Finally, business law includes the framework of laws and legislation that courts and lawmakers have created to regulate many aspects of business activities. Some of the areas that are heavily regulated include businesses' responsibilities to comply with environmental regulations, consumer protection laws and antitrust and business competition laws. Thus, while businesses exist to provide products and services and create profits for their owners, businesses must also conform to the many legal and ethical principles that regulate the worlds of commerce and industry.
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