If you’re pursuing your undergraduate degree in business or one of the many related degrees such as marketing, human resources management, public administration, accounting, or organizational management, you’ll likely be required to take a business law course at some point in your academic career, so you ought to understand the importance of business law. If you are working toward your MBA or other graduate business degree, you will likely take business law twice: once as an undergraduate and again during your graduate program. You may wonder why students study business law–especially if you’re planning a career in business. Before diving into the meaning and importance of why we study business law, let's take a look at the reasons and benefits of studying business law.
Businesses Follow the Law
It’s important for business owners, managers, and other professionals to have a basic understanding of business law to help them make better decisions. Just as there are laws that apply to people, there is a huge body of law that applies to business. Businesses need these laws for the same reasons that people do: to define unacceptable behavior, to provide certainty and stability, to protect the public, and to provide a mechanism for businesses to resolve disputes.
Throughout a business’ existence, it can do most things that a person can do, and we need laws to control those activities. A business can buy and sell property, sue and be sued, enter into contracts, hire and fire employees, and even commit crimes.
Laws Protect Businesses and People
We need business laws to cover all of these activities so that businesses can operate with some measure of predictability. For example, suppose you wanted to open a shoe factory. You’ll need to buy a piece of property and build your factory, which will be very expensive. Without established, predictable property laws that ensure that you are the legal owner of the land, you would be very reluctant to build the factory. There would always be some risk that someone else would come along and claim your property and factory as their own.
The same is true for all other business activity. You wouldn’t ship shoes to a retailer unless you had a way to force them to pay for the goods. You wouldn’t hire employees without some means of firing them if they didn’t do their job. In other words, it’s important to enter into contracts with a means of enforcing the agreement.
It’s also important for business owners, managers, and supervisors to understand what rights the business has against other businesses and individuals. For example, if you have an employee who is not doing his or her job, you should know your options. If you make and sell tires, you must know who will be held liable if someone is injured due to a blowout. If you enter into a contract with another business, you need to know who is bound to the contract, as well as what happens if those individuals cannot perform what they legally agreed to do.
The answers to all of these situations and more are provided by business law. The course is not intended to make anyone an expert in any area of business law, but instead to make business managers, owners, and executives more aware of the many legal issues that arise in the day-to-day operation of any business. Being aware of these potential issues will help you make the judgment calls and decisions that business professionals makes on a daily basis. A basic understanding of business law can help you spot potential legal issues as they come up, make better decisions, and know when to seek legal help.
Whether you are an entrepreneur starting your own business, a manager advancing your career at a Fortune 500 company, or just starting out in the business world, studying business law will better prepare you for a successful and rewarding career in business. Learn more about applying law in business administration, law enforcement administration, or political science and government.
Written by David Mackusick, JD, CPA. He is an assistant professor with the Forbes School of Business and Technology™ at Ashford University.
Why should I study business administration?
Business Administration is one of the most widely valued degrees in the modern work environment, as it provides a solid grounding in many areas of business and is flexible enough to prepare graduates for employment in many different careers.
Thanks to the understanding the course provides in many different areas of business, graduates can choose to pursue a career in varied disciplines such as marketing, operations, or administrative work.
In the modern job market, employers are increasingly seeking to find employees with the potential to contribute in multiple areas of the business – or who at least have an awareness of how their work can impact the rest of the company. This awareness is something a business administration degree indicates to them.
Many graduates will go on to work in a corporate environment, where a degree in business administration will equip them with a clear understanding of the business structure and should help to adapt their work accordingly. Overall, business administration is widely considered to be one of the most promising degrees in terms of potential employment opportunities following graduation, thanks to its flexibility and the range of subjects which it covers.
What skills will I develop studying Business Administration?
At SBBCollege we offer three degree levels of business administration (associate’s, bachelor’s and master’s) which provide students with a range of valuable skills for the modern business world. The specific skills and the depth in which they are taught will vary depending on the degree level.
Some of the skills which you will gain on these courses include:
- Accounting skills – including employee payroll systems, income statements and balance sheets, and understanding the value of manual and computerized systems
- The ability to accurately analyze and implement business decisions and reflect critically on these decisions
- Effective communication skills and methods within a corporate environment
- Human resources management – including learning about the processes of recruitment, interviewing, background checks, and conflict management
- Entrepreneurship skill – an introduction to the processes and responsibilities involved in running your own business
- Strategic planning – an introduction to strategically developing and implementing business planning on a short and long term basis
- Training systems – an overview of effective training and development systems which can be used to progress employees within a business
- Business technology – you will learn about the most effective methods for integrating modern technology into traditional business practices to enhance productivity and improve problem solving
- Business management – an introduction to the best methods of people management, decision making and structural organization
- Marketing – introducing the value of the most common methods of marketing a business in both traditional and online formats
How can I apply these skills?
Due to the broad range of skills which can be developed during a degree program in business administration, there are many different career paths and opportunities available to graduates. This flexibility makes it a very beneficial degree to have earned, and can see graduates move into many different areas of business operations.
Here are just some of the paths which business administration graduates might choose to pursue following completion of their course:
Entrepreneurship – This course offers an excellent crash course in the basics of operating a business and many graduates use it as inspiration to run their own business. Due to the fairly comprehensive breadth of subjects the course covers this makes it a good basis for budding entrepreneurs.
Human Resources – The multitude of subjects covered in this degree are particularly well suited to those considering taking a position in human resources, as it will give graduates a clear understanding in things like the hiring process and employee conflict management.
Management Positions – The broad range of skills acquired in the program prepares graduates for management positions across many different industries. It is often expected that management should have an understanding of all areas of the business, from employee supervision to finance.
Sales Work – The program focuses on many useful areas including communication skills and marketing techniques, which can be utilized in sales situations. Graduates with a solid grounding in such principles can be very effective in sales positions.
Ultimately these desirable skills can help you be more competitive and begin a promising career in a variety of potential roles.
Find out more about our degrees in Business Administration: