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Discussing Business Entities, Laws, and Regulations

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Question: 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.

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

For each business (all 3-listed above), 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 scenario (all three), 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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Sports Bar and Restaurant
Introduction:
According to the scenario, Lou and Jose are planning to open sports bar and restaurant. Miriam is a wealthy investor who is agreed to provide capital to them because they have not enough money. He will get a sufficient percentage of profit as ownership.

Business Entity, Control, Taxation and Liability:
The best suitable entity for this business organization as a sports restaurant and bar is the partnership firm, because there are three owners who want to start this business in return for a percentage of ownership. Miriam is the investor and Lou and Jose will take care of business operations of this organization (The General Partnership, 2010). So, the firm would be known as a partnership firm.

In a partnership business firm, the control is taken by all the partners. All the decisions are based on the mutual understanding and conformance of all the partners. The partnership between Lou and Jose is general but Miriam would not control on any business activities because he is investing money to earn profit only (Liability for partnership debts, 2010). As per the USA taxation policy, in a partnership firm, each partner is liable to pay tax separately. In this kind of business organization, each partner pays tax after distributing profit among them (The General Partnership, 2010).

In a partnership firm, partners should have unlimited liability. Liability of Lou and Jose is unlimited because they are responsible for each activity, but the liability of Miriam is limited because of role is to invest money only (Murray, n.d.). It is the responsibility of all the partners to behave in a lawful and ethical manner.

Laws and Regulations to Start Sports Bar as a Partnership Firm:
It is essential for Lou and Jose to follow some regulations according to the law to start this business firm, which is as follow:
- Both Lou and Jose should register for a Liquor license with the state government, so that they can serve alcohol to the customers. They should also hang this license in the bar to show the legal permission.
- Both the partners should also evaluate their legal responsibilities in a firm and all these laws should be in written form (The General Partnership, 2010).
- All the agreements between partners should be in written form and permitted by government, which describe the liability of all the partners and they cannot follow any illegal and unethical activities.

Risk regarding Business:
Some risks are also associated with the opening of a restaurant and sports bar, which should be considered by the partners to protect themselves and their firm (The General Partnership, 2010). The biggest risk is the loss of money for Miriam. It is essential for all of them to make a written agreement to share equal profit and loss (Should You Have a Partner? 2010). Before entering into the ...

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