What does business law govern?

Business law encompasses the body of laws that govern business and commercial transactions. This area of law provides the legal framework necessary for businesses to operate and engage in various activities, such as forming contracts, handling disputes, and adhering to regulatory requirements. It is essential for maintaining order and providing guidelines in the complex interactions of various commercial activities, from buying and selling goods to negotiating partnerships.

While ethical practices and personal conduct are important aspects of running a business, they fall more under corporate ethics and personal responsibility rather than the strict legal framework of business law. Environmental impact regulations, although significant, represent a specific subset of laws and would not cover the full range of business and commercial transactions that business law does. Therefore, the correct answer emphasizes the comprehensive nature of business law in governing various aspects of business operations.