The law impacts every aspect of society from development of a business to ideas and implementation and everything in between (marketing, hiring, producing) Decisions: corporation or proprietorship, nancing decisions (borrowing or not) By understanding the role of the law, an entrepreneur can maximize the protection that the law extends while avoiding tis pitfalls. Lack of knowledge can result in failure to maximize opportunities. Law: the set of rules and principles guiding conduct in society. Providing protection: people who break the criminal code of canada are subject to criminal sanctions (prison, The law protects society in 2 ways: 1: it sets rules with penalties in order to encourage compliance, 2: it seeks to hold those who break the law accountable for their misconduct. The law ensures that losses are paid for by the parties responsible for creating the, ex. If a law rm gives negligent advice to a client, that client can sue the rm for associates losses.