Business Entities, Laws, and Regulations - Term Paper Example

? Business entities, Laws and Regulations Insert Task Business Entities, Laws, and Regulations Introduction Business involves all activities related to buying and selling of goods in order to make a profit. There are different types of businesses which people can operate. Some of the entrepreneurs prefer being sole proprietors while others may prefer partnership depending on the personal commitment (Hillman, 1997). All types of businesses require one to have a business permit from the government to operate. For instance, a restaurant has its own regulations while building and construction has different regulations although they come from one government. This paper intends to look at different business scenarios and the regulations required by the government for one to run the business. Restaurant A restaurant is a place where people visit to get refreshment and get some delicious meals. In some restaurants, the proprietors can introduce other entertainment facilities to offer best sites for recreation. Miriam, Jose, and Luo plan to open up a restaurant that will offer recreational activities like watching of a large screen while enjoying. There are different types of partnership that the business entrepreneurs can form and run their businesses as a group. For example, they can form a General partnership or a limited partnership. General partners will work closely together every day and share all the responsibilities of the business. General partnership does not have any liability protection (Hillman, 1997). This means that all members are responsible for any loss that the company may incur (Howard, 2004). On the other hand, limited partnership has some of the members actively participating in the daily running of the business while others remain dormant and deal with duties not related to the business enterprise. These dormant partners may contribute some amount of capital to enable the business run. They then share the profit that the business gets through the agreed procedure. It is very possible for the three to open up their enterprise and run according to their wish. In this context, they will form a general partnership whereby Miriam does not have ample time to stay at the restaurant frequently, investigative partner, while the other two will be the managing partners. Formation of a general partnership for Miriam, Joe, and Luo can be completed through a certain procedure. First, they must be more than one person, they must be business partners, they should be co-owners of the business and the business must be for income generating purpose only (Drinker, 2002). Since Miriam has enough capital and the other two can work at the restaurant, it is possible for them to share the returns that arise from their work. Each person reports only the share of the total business profit on his or her returns. This is because partner ships do not have any tax liability. Thus, each individual is required by law to file a report with the government to explain all profits and losses that arise from the partnership. This is to enable the government to trace the partner’s tax on income. In the second scenario, Tara and Akiva want to start a birth centre for the expectant mothers to get services. The two have the obligation to come together and form a general partnership where they will be able to share all the profits and losses together in the course of running the business. It indicates that the business will have unlimited liabilities. Akiva and Tara will have to share responsibilities to enable smooth running of the business. Since this is a general partnership, it is necessary for the two to agree on how to handle issues of the birth centre (Hillman, 1997). Tara can be involved in employment and employee management while Akiva can deal with patients and their issues. The partners expect to take up a large loan to provide the business with the capital required. It law requires that Akiva and Tara should have a document that indicate they are in partnership. They must have minutes of their meeting sessions to produce to the financial organization to get their expected loan approved (Drinker, 2002). They are also required to register their organization so that it would be possible to give an account that they have a partnership, which is out for profit making. It will help them prove that their association is profit oriented. They will have to get a state license to identify themselves as business partners. Each individual will have to pay tax from own share of profit gain. This applies the same as in the first case for the government to trace the income of the individual person. Because their partnership will be general, it is important to not on ways and means clear the debt. It is worthwhile observing that they will be sharing both loses and profit. So, both of them must be active participators in the business. The picture indicates people enjoying their meals in a restaurant. The third scenario Mei-Lin is a hiring manger at the Sure-build Inc and wants to hire an employee after advertising for this position as a jackhammer. The advertisement stated that the applicants must have a high school diploma in the related field. Different people applied for the position following the advertisement (Hillman, 1997). Michel a pregnant woman of thirty-five years is a high school graduate. She has some skills in jackhammer since she was employed in the same field earlier. Eric on the other hand, is a very experienced person in jackhammer although he is not a high school graduate then he has attained the age of fifty-five. Felipe does not speak any form of English, he has no high school diploma more so, it is not clear if he has experience in jackhammer (Howard, 2004). Then lastly there is Nick of twenty-three years and a graduate from high school without any experience in jackhammer he has an epileptic problem. Affirmative action requires that there is an equal opportunity for both employment and hiring employees. It states that there should be no any form of discrimination due to status, race, sex, color, age nationality, religion or disability. It also gives directives that all employees are given equal chances for the advancement in their training affairs. Any form of discrimination leads one to be liable for consequence of his or her actions. It is also clear from the affirmative action that organizations should be able to overcome discrimination for groups like women, minorities, disabled people and veterans. This should take place through making of a continuous and a positive effort in their employment, recruitment promotion and retention. It requires that organizations should take steps to attract women and those disabled to their respective qualified job categories. The applicants are in conditions that may lead Mei-Lin into temptation. The first applicant, who is a woman, appears to be pregnant although she is qualified to take up the job. Mei-Lin has a great difficulty in making a cautious decision. This means that after some time the woman will have to seek for martinet leave (Howard, 2004). More so, a construction company needs people with good stamina and normal employees to carry out the duty. To operate a jackhammer, it is important that one be in his or her normal status. Thus, a woman, who is pregnant, can be exposed to certain dangers and it may affect the fetus. In this context, Michel cannot deal with a jackhammer because of the issues pertaining to the working process though she has all that entails in relation to this job (Hillman, 1997). Nick is greatly disadvantaged to this type of work. The problem he has may not allow him deal with operations like jackhammer. It is dangerous for a company to recruit an employee who can easily make the company liable for its actions in case of an accident. They may alter the proper working conditions for Nick. The diagram below indicates a jackhammer used for breaking hard grounds like stones and concrete walls. The best person to work with this tool is Felipe. In his late thirties, he could still handle the tool with good care he is experienced with jackhammer although he does not speak English. This means that he is a foreigner. Affirmative action prevents any form of discrimination basing on nationality. It is most likely that Mei-Lin would pick on Felipe. Conclusion Running a business in partnership can be in two forms, they include general partnership or limited partnership. General partnership requires that all the partners’ work at the business premises in the capacity of controlling all the activities. In this type of business, partnership there is unlimited liabilities. They share both the profits and losses accrued to the venture. The limited partnership only share profits but the limited partner does not share any loss. In both the partnerships, all partners pay taxes depending on their incurred profit or loss. In hiring employees, it is important to understand the requirements of the affirmative action (Howard, 2004). Anybody who acts against it may fall into great problems. Sometimes is much difficult to make decisions basing on the affirmative action plan. For instance race, gender, nationalities are some of the issues that the affirmative action plan raises. References Drinker, H. (2002). Tunneling, explosive compounds, and rock drills. New York: Long Horn Publishers. Hillman, R. (1997). "Limited Liability in Historical Perspective", Washington and Lee Law Review, Spring Howard, S. (2004). Reasons Opening a Restaurant Should Scare You, Washington DC: Macmillan Publishers. Read More