Q1.

Legal Aspects of a Business

--When starting up a new business it is very important to look at the legal aspects which will influence the
company in the future
I. Business form :- There are three basic legal business forms which can be chosen when starting up a new
company: sole proprietorship, partnership and corporation.
a. Sole Proprietorship :- The sole proprietorship is the oldest, most common, and simplest form of
business organization. A sole proprietorship is a business owned and managed by one person. the owner of
a sole proprietorship has complete control over the business, its operations, taxes on a sole proprietorship
are determined at the personal income tax rate of the owner. . A sole proprietorship is a good business
organization for an individual starting a business that will remain small, does not have great exposure to
liability.
b. Partnership :- Partnership is a business association of two or more persons. These 'persons can include
individuals, groups of individuals, companies, Each partner shares directly in the organization's profits and
shares control of the business operation, making it very profitable for the owners when times are good.
c. Corporation :- A corporation is a business entity which is owned by an individual or group of individuals
and they run a business that legally exists. A lot of employment is generated by corporations and they have
now a big impact on economic growth and the social development of any country A corporation has rights
and responsibilities just like people have, and can also be liable . The characteristics of a corporation are
the limited liability of shareholders.
Q2. FREEDOM OF TRADE
I. INTRODUCTION
Object of Protecting freedom of trade in a two-tier Polity
Freedom of trade is a type of economic policy that allows member countries to import and export goods
among each other with lower or no tariff imposed. While supporters say that it is a win win situation
traders with free access to the market and information and without trade barriers.
II.ADVANTAGES OF FREEDOM OF TRADE
1. It provides consumers with more options and the benefit of lower prices with imported products from
other countries . Consumer choose front a products there is monopoly in the markets Also, the high level
of freedom in this trade will result to reduced price,
2. It benefits trading countries through competitive advantage. countnes that have enough resources to
produce certain products will enjoy competitive advantage to specialise in such goods and be their only
suppliers to other countries In return, the purchasing countries can also benefit from the low prices of
these imported products
3.It is a key to economic growth. Country that are engaging in freedom of trade are seen to have richer
economies. there exists productive competition, where products are traded at lower prices/All these
aspects are good for economic growth
Disadvantages of Freedom of Trade

1. It will have an unfavourable effect on local businesses and producers freedom of trade is not
beneficial to local businesses and producers in terms of profits. local companies have to complete with the
prices, which they should do even if it is difficult for them consumers will go for imported goods over their
locally produced products
2. It would cause workers to live in desolate places for their jobs and be paid with low wages
Freedom of trade is believed to force labourers in poorer countries to work long hours and live in shanties
without the basic facilities, just to be able to keep their work and send money to their families
3. It would rob the citizen of jobs that are supposed to be theirs
Some groups say that this form of trading has taken away job opportunities for the average American, as
some manufacturers are encouraged to hire foreign, workers for cheaper labour and even relocate their
facilities overseas.
HISTORICAL ASPECT
1. LAW AND LEGAL SYSTEM IN VEDIC PERIOD.
Law in India has evolved from religious prescription to the current constitutional and legal system we have
today, traversing through secular legal systems and the common law[3],
India has a recorded legal history starting from the Vedic ages Secular law in India varied widely from
region to region and from ruler to ruler Court systems for civil and criminal matters were essential features
of forfeited hi many ruling dynasties of ancient India.
2. LEGAL SYSTEM IN ANCIENT INDIA.
India has the oldest judiciary in the world. No other judicial system has a more ancient or exalted
pedigree.[6] British Henry Maine described the legal system of ancient India "as an apparatus of cruel
absurdities”. These may be due to sheer ignorance/ or imperialist self-interest, or contempt for Indian
culture and civilization which was a part of the imperialist outlook which dominated British Jurists,
historians, and thinkers in the heyday of imperialism. But the effect of this miss representation, which has
few parallels in history, was to create a false picture of the Indian judicial and legal system both in India
and outside.
RULE OF LAW IN ANCIENT INDIA "A King who after having sworn that he shall protect his subjects fails to
protect them should be executed. like a mad dog"
Coming to the historical times of Mauryan Empire[10],Kautilya describes the the King's happiness; in their
welfare his welfare; whatever pleases him he shall not consider as good, but whether pleases his people
shall consider to good.. Rama, the King of Ayodhya, was compelled to banish his queen, whom he loved
and in whose chastity he had complete faith, simply because his subjects disapproved of his having taken
back a wife who had spent a year in the house of her abductor.
4. JUDICIARY IN ANCIENT INDIA :- According to the Artha-shastra of Kautilya, who is generally recognised
as the Prime Minister first Maurya Emperor , the realm was divided into administrative units called
Sthaniya. Dronamukha, Khrvatika and Sangrahana Law courts were established in each sangrahana, and
also at the meeting places of districts three ministers were permanently posted in each district of the
realm. The great jurists; Manu, Yajn-valkya, Katyayana, Brihaspati and others,