2. INTRODUCTION :
 Legal requirements for establishing a new
unit & management of a new venture or
setting up of small scale enterprise,
entrepreneurs comes across a no. of
situations to follow laws of the land.
 Entrepreneurs should be careful to obey the
legal formalities,procedures,policies & plans
for good government.

3.  Toidentify many of the legal issues likely to
arise in the course of starting and growing a
company and to suggest strategies not only
for ensuring compliance with law, but also
for using the law and the legal system to
increase predictability, maximize value, and
manage risk.

4.  Local governments may impose licensing or
permit requirements for businesses that
impact community health or the
environment.
 Itmay also be necessary for you to pay local
property taxes.

5.  Newreport argues that government tax
changes will reduce the incentives to
become an entrepreneur.
 Thetop marginal tax rate on income earned,
saved, invested in a company and then
passed on to children is currently 90%.
 With the forthcoming 50% top tax rate, that
will rise to 92%.

6.  The measure will take 20% of the money
entrepreneurs are left with the current 40% top
tax rate.
 Inheritance Tax, in particular, may reduce the
extent that entrepreneurs can obtain finance
without the risks that come with a bank loan.
 The tax system undermines the large rewards
that justify the risks attached to starting a new
business.

7.  Everyentrepreneur is preoccupied with
success. But to succeed, we must first
understand failure.
 Thisis not to suggest that failure is
something to strive for. On the contrary, we
want to understand why failures happen,so
that we can better avoid them.

8.  Ashuman beings, we actually learn a lot
more from our failures than our successes.
This is because our failures are more
memorable to us.
 Aspainful as they are, lost opportunities are
constant reminders of our mistakes. When
we succeed, we may become sloppy. When
we realize we have screwed up, we vow not
to do it again.

9. A wilful defaulter is a borrower who has
defaulted in meeting his payment/repayment
obligations to the lender even when he has
the capacity to honour the said obligations.