Effects of Preventive Law on Risk Management of Business Operation

• Main Authors: XIAO,YU-LONG, 蕭毓龍
• Other Authors: HU,WAN-PEI
• Format: Others
• Language: zh-TW
• Published: 2013
• Online Access: http://ndltd.ncl.edu.tw/handle/70952404210878484332

碩士 === 正修科技大學 === 經營管理研究所 === 101 === Abstract Any convention, offering, conference, establishment, shareholders’ and directors’ meeting, organization, operation, labor-administration communication, production, marketing, financial report and taxation, research and development (R&D) and intellectual property rights, trademark and copyright, sharing of bonus and allotment of shares, reinvestment and property purchase of any enterprises or legal persons, as well as all affairs relating to business operation and management have their corresponding decrees and regulations to observe. If operation managers of enterprises are unclear of the legal risks, but are intent on earning profits for business purpose, then they might have violated the laws. People with slight violation will have to pay administrative penalty fines or will be claimed for compensation for loss, whereas those with serious violation will have to take criminal responsibilities. In other words, understanding laws and regulations and preventing violation of laws are just like acts of illness prevention and healthcare. When enterprises have more sufficient and correct concepts and knowledge of related areas, they will achieve more protection from and lower risk in law violation, earn more profits, and result in better business performance. Starting from the legal problems that business operators may confront during operation and management process, the study explores how preventive law affects risk management issue of business operation and management, and relativity of preventive law to the factors affecting overall business performance of enterprises. As for research approach of the study, the responsible persons or chief executive officers (CEOs) of different enterprises were interviewed so as to know their operation items, establishment pattern, enterprise age, capital, as well as the responsible persons’ name, sex, age, working experience and intention of business establishment, and understand other background and foundation information of enterprises, such as the seniority of these responsible persons and year of establishment of enterprises, and also their awareness and understanding degree of related legal knowledge, and how they affect business operation and conditions. As known from the interview results, most of the interviewed responsible persons or CEOs of enterprises did not clearly understand the relevant legal knowledge of corporate operation and management, and the legal risk they might confront. Different business categories, establishment patterns, sexes, ages, working experience and intentions of business establishment did not have significant difference in the responsible persons’ or CEOs’ legal knowledge of corporate operation and management, and the legal risk possibly confronted by corporate operation. On the contrary, age and capital of enterprise, as well as legal knowledge and experience of operators have effects on the operation and management functions of enterprises, such as their marketing, operation management, finance, organization and R&D. And the five major relevant laws and regulations involving business operation, namely Synthetic Law, Economics Law, Finance Law, Organization Law and International Trade Law, have significant effects on operation performance of enterprises and the legal risk they may confront. Besides, research data show that older age and higher capital of enterprises, or richer legal knowledge and experience of operators are relatively more systematic in corporate management and planning functions, such as marketing, operation management, finance, organization and R&D, and also have lower legal risk for enterprises to confront loss, lawsuit, imprisonment and business termination. The study not only provides a complete and systematic analysis structure, but is also referential for us to understand the significance of preventive law to risk control of business operation. Research results of the study are also contributive to practices of enterprises.