Question

Instructions:

Review the following scenario and respond to the follow-up questions in an APA formatted report of 2400-2600 words.

Case:

Tom, Dickk, and Harry have been best friends since kindergarten. Tom is the business brain of the group. Dickk 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 Dickk would cast and weld into decorative art pieces. Tom will raise money from friends and family and look for distribution channels. Dickk has a step-daughter, Dorothy, who is 16 and mechanically inclined as well. Dorothy could be Dickk’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. Dickk’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 some of the agreements that might be needed?

Answer 1

Answer:

To structure the business following key points will be required-

1. Varied Liabilities
2. Need of Investment
3. Expenses and Procedures(SoPs)
4. Income Tax

Explanation:-

1. Varied Liabilities- The general procedure due to this type is a lot more unsafe or perhaps dangerous this online game that your business will engage in, a significantly less particular the liability you would like to have. Each organization in addition to Tom allow business owners a sort of "limited liability," in which anyone looking for says next to the business will use a hard time putting particular the liability for you since the owner. If set up of business as the alliance or an only proprietorship, tom will be private to blame for anything at all the business did wrong.
2. Need of Investment- Structuring a business as any business permits a business to offer gives of the title with the business through stock offerings. This particular is different than additional three business structures, which in turn do not allow this promoting of a section of the business through this sale of stocks. On account of this investment scheme, perhaps it will enable people who own any business to draw in traders along with keep personnel quicker by stock.
3. Expenses and Procedures - In general, there aren't any particular forms which need to be submitted to establish often associated 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.
4. Income Tax- An effective way to help look at the different income tax structures that will support these business structures may me is to interrupt these in two categories firstly a single consisting of those business structures wherever the business owners pay taxes on business profits, and secondly something including all structures of activity wherever the business owners will not pay taxes on business profits.

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Legal issues that could arise in operating the business and selling the product-

1. Discrimination Situation
2. Dissatisfied Employees
3. Immigration Audits

Explanation:-

1. Discrimination/Harassment Situations-The legal ramifications regarding alleged discrimination - sexual, ethnic, get older you aren't, may cause your company serious problems. Make sure one's time, and legal departments are very well prepared to handle these problems as long as they arise. During the choosing process, you should always be geared up with all the candidates' should suggestions of discrimination arise, demonstrate that you just hire by far the most competent persons, regardless of sexual category, ethnic culture as well as age.
2. Dissatisfied Employees- For Tom Dickk & Harry this can be one of the most common legal headaches. With The states, employees have a lot more privileges as compared with alternative countries, by using unions as well as reasons for "wrongful cancelling ."In case they terminate any non-performing worker, be sure she or him symptoms files meticulously drafted through an attorney upon canceling to make relation to retrenchment crystal clear.
3. Immigration Audits - Tom Dickk & Harry should make sure that one's company's employees can legitimately function inside the U.S. States. Perform major lower sweeps out of one's businesses staff, utilizing background checks, to recognize against the law migrants along with falsified documents. The real U.S. government has been known to perform extensive shock immigration law audits that will cripple a company if it is discovered to be utilizing against the law labor.

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Some of the agreements that might be needed by Tom Dickkk & Harry

Limited liability Agreement

Setting up your business as a limited liability company (LLC) offers some advantages that are not available to sole proprietors or partnerships. These advantages relate mostly to limiting personal liability as much as possible. However, there are also significant cash flow and tax advantages, which make operating your business as an LLC even more attractive.

Implementation Agreements

Implementation Agreements elaborate upon the details of a Detailed or even Framework Agreement. An implementation agreement almost often needs a whole new round connected with negotiations with the appropriate parties. In these negotiations, structure or even comprehensive agreements are fine-tuned along with granting specificity. The aim of implementation agreements is to work through the details along with technicians to accomplish setup of the complete agreement. Implementation agreements are not invariably officially prepared documents. At times these are oral commitments, exchanges connected with text letters, along with synovial open claims which help switch setup forward..

Structure and Substance of Agreements

Peace agreements are not invariably set up throughout the same way. At times these are just one paper composed of numerous chapters or even distinct components. With different instances, each one substantive element can participate in 1 comprehensive agreement or certainly be a stand-alone agreement that is negotiated separately and during different time periods connected with a peace process. The substance of an agreement also is different from turmoil to conflict. The struggle, the issues throughout contest and how the particular struggle is brought to an end usually are things that should modify the structure and substance of a peace agreement.

Employment Agreement

Anytime you have an employee or someone who is doing work for your business, you have an employment contract. It may be oral or implied, but there is a contract. However, in the absence of a written agreement, the terms of the employment are subject to miscommunication and misunderstanding.

Non-Disclosure Agreement

Every business needs to be concerned with protecting its competitive advantage. This means ensuring that whatever proprietary information you share with your employees or business partners will not become public. A non-disclosure agreement also known as a confidentiality agreement can help Tom Dickk & harry protect their business practices and intellectual property, such as trade secrets, from getting into the hands of their competitors.