The effects and effects of specified laws and regulations on a particular company

The effects and effects of specified laws and regulations on a particular company

Each country has its own rules, laws, and regulatory bodies or bodies that regulate the manufacture, sale, marketing and distribution of products within the country. Laws and ordinances are deliberately made for people and other institutions as a guide to order and sanity in society. Because of this, it is likely that their application will affect business plans. Their effects on a particular company are also inevitable.

An attempt would be made to discuss specific provisions and laws with particular reference to aviation and airline, environmental rules, stock market rules, banking regulations, research (and development) cooperation rules, stock option rules, labor regulations, intellectual property rights and social security regulations industry by industry and effects on business plans Where it is needed.

For example, the airport's high density rule (HDR) in the aviation industry is considered controversial. This rule requires that no more than 155 flights take off and land at OHare Airport and at three other major airports in the country between kl. 6.45 and at. 15.15. There was an expectation to keep the number of aircraft operations at OHARE during that timeframe and to keep the amount of noise generated by aircraft. When this failed, a law was proposed to abolish the rule.

In the tobacco industry, such as the Food and Drug Administration (FDA), a US government government issued a tobacco regulation in the federal registry to regulate the sale and distribution of cigarettes and smokeless tobacco to children and adolescents based on health effects of tobacco use. The rule states that anyone under the age of 18 should not sell cigarette and smoke free tobacco. The rule also requires manufacturers, distributors and dealers to comply with certain conditions for the sale, distribution and marketing of tobacco products. Thus, vending machines and self-service displays were prohibited; signs within 1000 field schools and playgrounds were also forbidden. This may have affected companies that engage in such companies.

In financial terms, however, the rule is expected to provide significant health-related benefits ranging from $ 28 billion to $ 43 billion each year based on the premise that many young people will not start smoking due to the rule. with the FDA estimating that the rule will introduce non-recurring costs of about $ 187 million.

With companies of all sizes, access to capital is of great importance, especially in terms of start-up. Laws and regulations may affect the amount of investments available either from foreign or local investors or financial institutions. The most important rules on capital are usually made by governments. These rules or regulations primarily affect the development of venture capital even though they are intended to protect against defaults. In the United Kingdom, the government shows that the corporate networks network to coordinate the flow of small and medium-sized investment capital proves to be successful - a positive effect. Also, due to lack of access to pension funds in the European Union, there is a limited institutional investment. In the case of the United States, most capital companies prefer to invest more than $ 3 million, while most entrepreneurs can not get more than $ 250,000 from their own source and close relationships.

The effect of regulations on corporate plans, especially those that are technology-based, limits the venture capital financing for these companies and influences what they can or intend to do, eventually limiting their ability to employ new hands, and thereby affecting socio-economic fiber in society. For example, some government regulations also specify what kind of investors are eligible to finance venture capital due to the high risks of certain classes of investors.

In some countries, most companies are funding sources through stock markets. In the United Kingdom, except for the London Stock Exchange, there is the Alternative Market for Investments (AIM); deliberately set up to help small and medium-sized businesses. The rules on registration, listing and IPO in terms of size, age, profit and management are often often too costly and unnecessarily complicated for small and new businesses. This is known to prevent access to finance for most companies, making it always impossible for some companies to follow their plans and always need their growth needs. Ghana Sugar Estate is an expression of companies denied the necessary funding due to controversial restrictions on listing to the Ghana Stock Exchange. The effects of this are seen in the overgrown plantations of the newly formed sugar cane company in the eastern region of Ghana, a loss of approximately SEK 2,000 per day in revenue to the company and loss of jobs and raw materials for most industries dependent on processed sugar cane for their work.


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