Question

presentation of no more than 8 slides summarizing the case and your response, to be posted and discussed by peers in Unit 11. Case Tom, Dick, and Harry have been best friends since kindergarten. Tom is the business brain of the group. Dick is the mechanical one and Harry is the creative one. All grown-up, the boys decided that they should start making some serious money to provide for their expanding families. The boys decided that they salvage small scrap metal pieces, nuts, and bolts from junkyards and salvage yards which Harry would design and Dick would cast and weld into decorative art pieces. Tom will raise money from friends and family and look for distribution channels. Dick has a step-daughter, Dorothy, who is 16 and mechanically inclined as well Dorothy could be Dick's apprentice Harry's wife, Helen, is a recent BBA graduate from Yorkville University specializing in marketing and she could be recruited to help with sales and marketing. Helen's good friend, Fern, is an award winning designer with a national home decor chain who the group might be able to induce to join them. Tom's twin brother, Tim, recently won the lottery and is pursuing his dream to be a photographer. Dick's wife, Janine, is a real estate agent she believes she has found an old warehouse in the industrial part of town that could be turned into their headquarters. The owner of the warehouse, Jordan, is retiring and open to the idea of selling or renting the space. How might the business be structured? What might be some of the legal issues that could arise in operating the business and selling the product? What are som of the agreements that might be needed? Q Evaluation Capstone Project will be marked in its entirety out of 100. The following rubric indicates the criteria students are to adhere to, and their relative weights to the assignment overall

Answer 1

Following points are to be considered before structuring the business:

a. Varied Liabilities- Every organization, in addition to Tom permits the business owners a kind of "limited liability," under this type of liability, anyone who is looking next to the business will find it a hard time putting up particular liability since he is the owner. If the business is being commenced as a proprietorship or alliance, Tom will be the only one who will be responsible for all the misconduct of the business.

b. Need for Investment- They can always try the option for giving out the shares of the company in stock market so that it will be easy for them to get funds, rather than investing the whole amount themselves.

c. Expenses and the Procedures - In general, there isn’t any kind of particular form which needs to be submitted in order to set up associations with these business structures. Additionally, there are rarely almost any expenses related to creating or perhaps retaining often related to these business structures. Tom in addition to organizations, on the other hand, happen to be more challenging and dear to find out in addition to maintain, to start a limited liability business, Tom should record "Reports Associated with Use" with all your assistant related to state in addition to fork out expenses belonging to the incorporation. The details from the articles or blog posts related to inclusion in addition to the volume of the fee can vary to match the state of Hawaii in places you put in place your current business.

d. Income Tax- There are a huge variety of options as well as supports available from the government these days. They need to study in detail all the options available for them and find the best option available for them like only paying taxes to the profits generated.

Legal issues that can rise while operating the business and when selling the product-

1. 1. Situations of discrimination and harassment — The legal repercussions of alleged discrimination — racial, cultural, getting a bit older than you are, that cause serious problems for your business. Make sure that time is right, and the legal teams are really well prepared to deal with these issues as long as they occur. During the recruiting process, you will also be consistent with all the applicants if biased recommendations occur, showing that you are only selecting the most qualified people, regardless of sexual orientation, ethnic origin and age.

2. Dissatisfied Staff- This could be one of the most common legal headaches for 3 of them. For The States, employees have a ton more rights compared to different nations, use contracts as well as grounds for "false cancelation." In the event that they fire any underperforming worker, make sure that she or he files symptoms carefully drawn up by an attorney after cancelation to make it very clear the connection to retrenchment.

3. Immigration Audits-The 3 people might also ensure that employees in one's own company can function within the U.S. legitimately. Perform large lower sweeps out of the workers of one's companies, using background checks to identify migrants against the law along with falsified records. The actual U.S. government has also been known to carry out thorough investigations of shock immigration policy that can cripple a corporation if it is found to be using it against the labor law.

Agreements required

· Agreement on Limited Liability

Creating the business venture as a limited liability company ( LLC) offers such incentives which are not applicable to sole proprietors or partnerships. Such benefits also apply to the overall legal restriction of personal responsibility. Moreover, also there are significant cash flow and tax benefits which find it even more attractive to run your company as an LLC.

· Implementation Agreements

Implementation Agreements expand on the specifics of a formal agreement, or indeed a framework agreement. An implementation agreement almost always involves a whole new process, related to talks among the relevant parties. Structure and even comprehensive arrangements are fine-tuned in such discussions along with precision for the granting. The aim of implementing agreements is to work with technicians through the specifics to achieve the complete agreement setup. Implementation agreements are not agreements and are usually prepared officially. Those are often oral promises, exchanges linked to text messages, along with open synovial statements that help move setup ahead.

· Structure and Substance of Agreements

· Peace agreements really aren't necessarily formed along the same grounds. There are often only one paper consisting of multiple chapters, and even distinct elements. Can substantive aspect may participate in 1 comprehensive agreement with various instances, or definitely be a stand-alone arrangement that is negotiated independently and over different time periods related to a peace process. Often, the content of a contract is different from chaos to conflict. The fight, the problems in the contest and how to put the specific battle to an end are typically items that will alter the framework and substance of a peace agreement.

· Employment Agreement

Each time they get an employee or someone who does work for the company, they have a contract for jobs. This may be verbal or implied but there is still a contract. Moreover, the employment contracts are subject to miscommunication and confusion in the absence of a formal agreement.

· Non-Disclosure Agreement

Each company needs to look to preserve its competitive edge. This includes making sure that any confidential knowledge you disclose with your employees or business associates is not made public. A non-disclosure agreement also defined as a confidentiality agreement may help 3 of them to secure their corporate practices and intellectual property from ending up in the hands of their rivals, such as trade secrets.