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This question is difficult to answer without knowing more specifically what you mean by being "prepared" for business or law school. I'll break this down into two answers.
If your question refers to how well does Williams prepare one for business/law school in terms of being able to think analytically and with sophistication, being able to handle heavy work loads, and being able to manage time effectively, then sure, Williams will do just fine. Williams is an elite LAC, and the academic environment there is no joke. If you want to succeed there, you won't be slacking off.
If your question refers to how well Williams prepares you in terms of applying to and gaining admission to top business and law schools, then Williams is also a fine place. But you should keep something in mind here. The reputation of your undergraduate school has very little to do with admission to top business and law schools. For the former, what matter most are your grades, your recommendations, and your work experience (the GMAT is really more of a secondary concern). For the latter, two things matter the most: your GPA and your LSAT. Williams would be no different from Dartmouth or Brown in this regard; all three are excellent, top schools. But don't go to Williams just because you think it will give you some edge over a public state school graduate. It won't. For that matter, it wouldn't matter if you came from Harvard or Yale (though some people would debate those schools give a small boost). For instance, a Williams graduate with a 3.4 GPA and a 164 LSAT is still not going to get into a Harvard Law or a Stanford Law, no matter how excellent his recommendations or personal statement (assuming the applicant is not an under-represented minority or hasn't done something truly, truly extraordinary with her life). On the other hand, some random graduate from FSU with a 4.0 GPA and a 177 LSAT WILL get into a Harvard Law or a Stanford Law.
Full disclosure: I graduated from Williams in 2008 and will be attending Harvard Law starting in the fall of this year.
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