Business Entities, Laws, and Regulations Term Paper

Business Entities, Laws, and Regulations - Term Paper modelThis paper intends to look at different business scenarios and the regulations required by the government for cardinal to draw the business. Restaurant A eating house is a place where people visit to ready refreshment and get some delicious meals. In some restaurants, the proprietors female genital organ introduce other entertainment facilities to offer outgo sites for recreation. Miriam, Jose, and Luo plan to open up a restaurant that ordain offer recreational activities like observance of a large screen while enjoying. There are different types of compact that the business entrepreneurs can invent and run their businesses as a group. For example, they can form a General pardnership or a extra partnership. General partners will work closely unneurotic e real day and character each 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 tolerate dormant and deal with duties not related to the business enterprise. These dormant partners may contribute some amount of money of capital to modify the business run. They then share the profit that the business gets through the maked 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 mustiness 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 just now (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 explicate 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 lawfulness to file a report with the government to explain all earnings and losses that arise from the partnership. This is to enable the government to trace the partners tax on income. In the second scenario, Tara and Akiva want to scrape 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 direction while Akiva can deal with patients and their issues. The partners expect to take up a large loan to ply 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