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.