Ethical and Legal Issues

Business owners are required to obey all legislation concerning the operations of a business. These include, paying taxes, business registration, obtaining licenses when required etc. Business owners should also operate their business based on integrity. This involves:

– Environmental awareness – reducing pollution and harmful effluents in the rivers and seas.

– Avoiding  tied selling (marrying of goods)

– Misleading advertising (untruths about goods advertised)

– Untrue sale price – For example, writing the word sale on items for which the price remains the same.

– The use of market dominance to squeeze firms out of the industry- For example large firms may drop the price of their goods so low that small firms are unable to compete with them.

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