Business Entities, Laws, and Regulations Paper Essay Sample

of profits and losses between the general and limited partners. General partners have unlimited liability for debts and obligations, whereas limited partners are only responsible for debts and obligations up to their capital contributions.

They are not personally responsible for the debts and duties of the limited partnership. In 2001, there was a change to the Revised Uniform Limited Partnership Act. Cheeseman (2010) stated that the limited liability partnership agreement can give certain or all limited partners a say in the management of the partnership's business.

"A limited partnership offers a benefit in terms of revenue enhancement as it operates as a flow-through entity. This means that all profits and losses directly transfer to the individual limited partners. The business itself is not subject to paying taxes on its income" (Spaulding, 2005-2011).

Regulations and Risks

The spouses must be aware of certain laws and regulations, which include the need for an operating license, health license, and liquor license. If the business operates without these licenses or permits, there is a risk of closure. They also need to address daily risks like maintaining a safe environment.

It is important to have professionals install and adhere to safety codes when hanging televisions to prevent the risk of them falling on clients or employees. Additionally, the following scenario involves two individuals in the medical field who have met all the necessary requirements to become licensed accoucheurs. They are Akiva and Tara, and they have a shared goal of opening a birth clinic.

They will secure a substantial loan for start-up expenses. Akiva and Tara should establish a Limited Liability Partnership (LLP) as their business entity. In an LLP, all partners are limited partners

and are only liable for their own investment if the business fails. No one is personally responsible for the partnership's debts and obligations beyond their contributions. (Cheeseman.

p. 274) . According to Chessesman (2010), LLPs are required by many province laws to have a minimum of $1 million liability insurance that covers negligence, unlawful acts, and misconduct by partners or employees of the LLP. LLPs also follow flow-through taxation, similar to other partnerships.

All financials are reported on the individual's revenue enhancement returns.

Laws, Regulations, and Risks

The first thing Akiva and Tara need to do is look at the province ordinances as each province has different ordinances. The province ordinances will include things like definitions and staffing.

Installation, fire, and building codes, as well as the services permitted, are all essential for childbirth centers. For example, no states permit cesarean sections to be done in these facilities. These regulations also outline necessary services, policies, procedures, organization, quality assurance, and evaluation (American Association of Birth Centers).

In 2007, Akiva and Tara faced the risk of malpractice and they needed to ensure they had enough coverage through personal liability and malpractice insurance. Another concern they had was the possibility of their business failing, as they were funding it with a large loan that needed to be repaid regardless of the business's success.

The final scenario involves building and examines the laws and regulations that must be followed when hiring employees. The scenario focuses on Mei-Lin, the hiring director for Surebuild, Inc., a new construction company.

She has placed an ad for a position as an air hammer operator, which requires a high school diploma. The applicants consist of Michelle, 35 years old and visibly

pregnant, who is both a high school graduate and has previous experience in this role. Eric, 55 years old, possesses experience with an air hammer but does not hold a high school diploma. Felipe, 38 years old, lacks English language skills and also does not possess a high school diploma.

Unlike the other person who has experience with an air hammer, Nick is a 23-year-old college graduate who has epilepsy and is not familiar with this tool. Moreover, in the 1960s, Congress enacted a series of federal laws aimed at eradicating employment discrimination.

The purpose of these laws is to guarantee equal employment opportunities for both employees and job applicants. The federal courts, particularly the U.S. Supreme Court, have provided an extensive interpretation of these statutes (Cheeseman).

Cheeseman (2010) states that Title VII of the Civil Rights Act of 1964 has the objective of eradicating discrimination rooted in race, color, national origin, sex, and religion. This legislation is applicable to employers with a workforce consisting of no less than 15 individuals.

The text highlights that various entities, including employment bureaus, labor brotherhoods with at least 15 members, province and local authorities and their bureaus, as well as most federal authorities' employment, are prohibited from engaging in discrimination. Specifically, Mei-Lin is not allowed to discriminate against Michelle due to her pregnancy. The Pregnancy Discrimination Act was enacted in 1978 as an amendment to Title VII. However, Mei-Lin has the option to not hire individuals below the age of 40 without it being considered discriminatory under the Age Discrimination in Employment Act. This act permits employers to have a hiring policy that exclusively includes workers who are 40 years old or

older.

The Americans with Disabilities Act (ADA) protects Nick from discrimination during the hiring process due to his epilepsy. Mei-Lin has the right to reject Eric and Felipe's applications because they do not have a high school diploma. However, she cannot reject applicants for lacking jackhammering experience since it was not stated as a requirement in the advertisement. Mei-Lin must be careful when assessing and rejecting applicants. It is important to carefully consider all types of business entities and evaluate their advantages and disadvantages before starting a business. Rules govern every business situation.

The text highlights the importance of taking into account ordinances and hazards prior to starting and operating a business. It also discusses the benefits of two types of partnerships and provides insights on avoiding instances of favoritism when hiring employees.

These are all important factors to consider whether it's a business just starting or a business that has been operating for 20 years.

References

1. American Association of Birth Centers. ( 2007 ) . Birth Center Regulations. Retrieved from hypertext transfer protocol: //www. birthcenters. org/open-abc/bc-regs. php
2. Cheeseman, H. R. (2010). The legal environment of business and online commerce: Business ethics, e-commerce, regulatory.

and international issues. (6th ed.) Upper Saddle River. New Jersey: Pearson Prentice Hall.

Retrieved from hypertext transfer protocol: //thismatter.com/money/funds/dpp/limited-partnership-taxation. htm