Business Law

Business Entities, Laws, and Regulations Paper

Name

BUS/415

Instructor Name

July 5, 2010

Business Entities, Laws, and Regulations Paper

There are two hypothetical businesses or scenarios which are selected for the following paper. This paper will comprise of contemplations regarding various issues which these businesses will have to face. These may include issues related to legal, liability, control, taxation, and risk and regulatory. Furthermore a hypothetical manager scenario will be there according to which a manager will hire from amongst several candidates with different qualifications and experiences. An advertisement for a jackhammer operator will be placed in accordance to which the applicant will be selected from numerous applicants and also the regulatory and legal issues will be considered while doing this selection.

Professional Practice Scenario

As per this scenario, a big loan or credit is required by Akiva and Tara who are interested in opening a birthing clinic. For this purpose they need large financing which is possible through the loan. A limited partnership will be created when two medical professionals Akiva and Tara will enter a partnership. This will be an LLP or Limited Liability Partnership. According to Cheeseman (2010, p.274) there is advantage for the partners to enter an LLP as the liability on each partner is up to the capital contribution or investments in the partnership. When articles of partnership is filed with the secretary of the state where the partner ship is organized then the LLP is formed. This partnership is governed by the LLP laws of the state and in order to perform and continue business in a state the partnership must follow the state laws and regulations. There are a number of states who require an LLP to carry a minimum of $1,000,000 for the purpose of liability insurance covering negligence, wrongful acts or any misconduct the employees or partners. As far as taxation of the LLP is concerned it is...