People conduct business within a legal environment.
The interest of society in protecting both commerce and individuals has resulted in many laws regulating the conduct of business. A business education would not be complete without the knowledge of these laws which serve as a compass and guide to business decisions and provide a general direction and answers to questions of what a business may or may not do. Corley highlights the legal and regulatory environment in which people and companies conduct business activities. Other factors also influence business decisions such as economic incentives, ethical standards, and an organization's view of social responsibility. The McGraw-Hill Companies.