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    Business Entities, Law, and Regulations

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    Restaurant/bar: Lou and Jose plan to open a sports bar and restaurant where customers socialize and watch sporting events on large-screen TVs that hang around the bar. They do not have much money, but they do have Miriam, a wealthy investor who does not have time to participate in the business, but wants to provide capital to start the business in return for a percentage ownership.

    Extermination business: Frank is a wealthy investor who plans to open a chain of exterminating businesses across the United States.

    Professional practice: Akiva and Tara have just completed all educational and experiential requirements to be licensed as obstetricians. They want to open a birth clinic together. They will take out a large loan to finance start-up costs.

    Construction Scenario: Mei-Lin is the hiring manager for Surebuild, Inc., a new construction company. She has advertised a position as a jackhammer operator. The position's description states that the successful applicant must have a high school diploma. The following people apply for the position: Michelle, 35, who appears to be pregnant, is a high school graduate, and was formerly employed as a jackhammer operator; Eric, 55, who is experienced with a jackhammer, but has no high school diploma; Felipe, who is 38, speaks no English, has no high school diploma, but is experienced with a jackhammer; and Nick, 23, a college graduate who is epileptic, and has no experience with a jackhammer.

    Discuss two of the above businesses, as well as the Construction scenario (that's 3 scenarios in total).
    For each business, discuss the business entity that represents the best choice for each business, taking control, taxation, and liability issues into consideration. Identify laws and regulations each business must consider in starting the business, and identify risks against which each business must protect itself. For the construction scenario, discuss the above elements, and identify and discuss the employment laws and regulations with which the business must comply in making a decision.

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    Solution Preview

    Please find a guide to your problem. Thanks.

    QUESTION:
    Restaurant/bar: Lou and Jose plan to open a sports bar and restaurant where customers socialize and watch sporting events on large-screen TVs that hang around the bar. They do not have much money, but they do have Miriam, a wealthy investor who does not have time to participate in the business, but wants to provide capital to start the business in return for a percentage ownership.

    Extermination business: Frank is a wealthy investor who plans to open a chain of exterminating businesses across the United States.

    Professional practice: Akiva and Tara have just completed all educational and experiential requirements to be licensed as obstetricians. They want to open a birth clinic together. They will take out a large loan to finance start-up costs.

    Construction Scenario: Mei-Lin is the hiring manager for Surebuild, Inc., a new construction company. She has advertised a position as a jackhammer operator. The position’s description states that the successful applicant must have a high school diploma. The following people apply for the position: Michelle, 35, who appears to be pregnant, is a high school graduate, and was formerly employed as a jackhammer operator; Eric, 55, who is experienced with a jackhammer, but has no high school diploma; Felipe, who is 38, speaks no English, has no high school diploma, but is experienced with a jackhammer; and Nick, 23, a college graduate who is epileptic, and has no experience with a jackhammer.

    discussing two of the above businesses, as well as the Construction scenario (that's 3 scenarios in total).
    For each business, discuss the business entity that represents the best choice for each business, taking control, taxation, and liability issues into consideration. Identify laws and regulations each business must consider in starting the business, and identify risks against which each business must protect itself. For the construction scenario, discuss the above elements, and identify and discuss the employment laws and regulations with which the business must comply in making a decision.
    2000 word

    GUIDE TO THE SOLUTION:
    Extermination business: Frank is a wealthy investor who plans to open a chain of exterminating businesses across the United States.
    The type of business that Frank wants to open up is refereed to as a chain store. A chain store is basically a group or string of retail outlets. Chain stores can sell just about anything and usually get their supplies from large warehouses so as to reduce their overhead costs and increase the purchasing power of the retail chain's purchasing agents.
    The differentiating feature of chain stores and multinationals is that with the latter, they have a presence in more than one country. Due to the presence of chain stores across various states, they are constantly challenged by tax laws, valuation methods, accounting practices and penalties within the various state laws jurisdictions that they operate in.
    In order to avoid the wrong arm of the law, chain stores are required to abide by the corporate tax laws within their various regions of operation. This enables proper reporting of such businesses that mandates greater transparency due to the scope of their operations. In order to narrow down the differences in pre-tax income reportable for tax compliance and financial reporting purposes, retail chains need to keep adapting to new accounting standards ...

    Solution Summary

    This solution provides a detailed guide to completing the given business law assignment.

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