Table of Contents
Inception of a business idea and implementing the same idea are two disparate entities. The later is factually governed by assorted laws as well as regulations as stipulated by (Marson, 2009). In essence, it is a requirement for each entrepreneur who intends to engage in any form of business to embrace motivation, the desire not mentioning talent viability. In any case, expansive market research and business planning must cloud the idea and be included in the business plain. Overtly, opening as well as operating a business is not an overnight undertaking. For instance, developing a comprehensive and well thought out business plan elevates the chances of the entity succeeding. Besides, a detailed business plan presents a vital tool in any attempts to solstice for the intended capital. A business entity is basically a provision within the legal system. Notably, corporations, partnerships, sole entity trades among many others.
On the other hand, business law encompasses diverse legal matters that ought to be put into consideration when one intends to form as well as operate a business entity. On overall, such matters are provisions of the state law. Any transaction that entails a sale or a lease of a product; (goods or services) the transaction is bound to be regulated under the provisions of the state’s commercial code. Adoption of common and uniform commercial code characterizes some nations. Among the basic laws, the corporation law, partnership, non-profit organizations laws are included. This study centers on three case studies. First, opening a restaurant/bar business is appraised in line with the three concepts; business entity, business law and regulation. Similarly, a study on extermination business utilizing the concepts is underpinned. Finally, an appraisal of the construction scenario will be studied.
To begin with, the case study is pinned to an intended undertaking by Frank. Frank is an affluent investor. He intends to open a chain of extermination businesses in assorted cities within the United States. Indubitably, this scenario can be subjected to analysis via the aforementioned concepts. In this regard, it is factual that Frank will be compelled to open his enterprise under sole proprietorship; as a business entity (SP, 2010). Evidently, Frank is the lone proprietor in the business. Thus, this entity allows him to have sole control over his extermination business as well as other interior activities. For instance, Frank will be entitled to freely file all the taxes that hi enterprise will face underneath his name. However, numerous advantages come with this form of proprietorship. Full control of company’s activities, as well as no profit sharing is some of the probable advantages. However, Frank is prone to huge risks by engaging into sole proprietorship. In any case, all the capital to be used will principally be drawn from his account. In addition, he may be required to pay for the Commercial Pesticide Applicator License on his own (PAA, 2006). To fulfill these requirements, Frank will be obliged to undergo state tests as well as examinations which are equally payable.
Besides, a successful examination is not the end. Frank’s license will have to be recertified yearly which is payable. Furthermore, for him to employ another person, the requirement is that the novel employees undergo the same test and examination test. All these bills are centered on his account. This basically implies that any losses incurred will not be shared. In any case, all his employees must acquire necessary licenses. Another profound risk is the use of chemicals within his premises. This is very dangerous to his family especially the young ones. This calls for apt precautionary measures that may be costly.
In this case study,
Lou and Jose intend to open a sports bar and restaurant. The target is those customers who want to socialize while watching sporting events on large screen TVs. However, both are incapacitated fiscally. Their capital is not enough to open and run their novel venture. This is why they have opted to involve Miriam as a third partner, so that she can offer financial boost. To address the concepts, it is important to note that the three are partners. Thus, their entity is underpins partnership agreement. The definition of a partnership entity can basically assume assertion that: it is an entity that embraces the interplay between persons who agree to share profits as well as losses incurred in any transactions carried out by one partner or all but for all (PAA: 2006). Both Lou and Jose will play the major role as well as control of the Bar activities. However, the three are equal partners. In any case, Miriam is merely investing in the enterprise as a passive partner but profits are her major concerns. However, liabilities are bound to be inevitable in their venture. Lou and Jose are likely to lose due to their role as prime controllers of the enterprise. The set conditions of sharing should never be compromised even during loses.
In addition, a liquor sale license is mandatory for this kind of venture. In addition, food licenses are required. Other probable liabilities entail them paying for tests and examinations at the Health department. Besides, a food handling as well as beer management class for each partner is required. Any other employees will as well have to undergo similar examination. Expenses are likely to be incurred when the duo opt to hire security personnel to protect them against drunkenness behaviour and risks. Atop this liabilities and risks, a trustworthy person is required to assist in the operations.
The construction Scenario
The hiring manger at Surebuild, Inc. Mr. Mei-Lin has advertised vacancies for a jackhammer’s position. The intricate thing is determining the best fit applicant for the job. The fundamental factor is that each applicant has to be fairly treated. In addition, the most qualified candidate, as stipulated by EEOC (Equal Employment Opportunity Act Commission). The United States’ EEOC is tasked with enforcing federal decrees and regulations, thus, illegalizing employment discrimination on ground of race, color sex and age among others (EEOC, 2009). Among the four applicants, Mei-Lin has to prudently select only one successful candidate. Michelle is 35 year old; she is pregnant but a high school graduate. However, Michelle is an experienced jackhammer. On the other hand, Eric is 55; very experienced but not a high school graduate as required. This is a viable basis not to hire Eric. Similarly, Felipe is experienced but lacks academic qualifications thus may not be hired as well. Nick (23 but epileptic) is academically qualified but lacks experience. However, he cannot be discriminated on disability grounds. Thus, Michelle and Nick should be considered. In case the firm requires someone who is immediately available, then Nick should carry the day. Conversely, Miriam should be considered (on basis of experience) if the recruitment is not urgent.
Various business entities exist. An enterprise owned and operated with one person is sole proprietorship entity. Frank’s ownership of the Extermination business is a palpable example. One with more than one owner is called Partnership proprietorship as exemplified by Lou, Jose and Miriam Venture in Bar/restaurant business. All entities are governed by business laws under the provisions of state law. The construction scenario overtly puts to test such decrees and regulations whereby recruitment of an employee must be without any form of discrimination.