This course is an introduction to the basic legal rules and principles governing the relations among managers, investors, and creditors in the business enterprise. The course is the foundation for advanced business courses. We focus on problems that arise because a firm's managers and owners have conflicting interests. We examine the costs associated with this conflict and how markets, legal rules and contracts might reduce them. Agency and partnership law are covered briefly, but we emphasize the financing, control, and conflicts of publicly held corporations. Special Instructions: Exposure to Quantitative Methods: Finance (Law 467) and Quantitative Methods: Statistical Inference (Law 468) will be helpful in this course and for a number of advanced courses in the law and business concentration and is strongly recommended.