5. Business Entity – Frank
Sole Proprietorship
Open Multiple Businesses
LLC
Franchises
Taking Control
Pros
Total control over all assets & liabilities
Profits
Business decisions
Employees
Shareholders
Cons
No Diversity
Takes all risks
Responsible for all liabilities
6. Taxation
Depends on direction
Personally Owned
Limited Liability Company (LLC)
Franchised
Liability Issues
Responsible for all legal
obligations
Franchises have separate
liability
7. Limited Liability Company (LLC):
Legal Entity
Combo of general partnerships, limited partnerships,
and corporations.
Own assets and liabilities
Shield shareholders from personal liabilities of
company’s debts
Choice to be taxed as partnership or corporation.
Avoid double taxation.
Owners manage business with limited liability.
8. Hiring jackhammer operator with
high school diploma.
Candidates:
Michelle (35) - appears pregnant with
former jackhammer experience and is
high school graduate.
Eric (55) - experienced with
jackhammer, but has no high school
diploma.
Felipe (38) - speaks no English with no
high school diploma. Has jackhammer
experience.
Nick (23) - epileptic college graduate
with no experience as jackhammer.
9. All companies should have adequate business insurance
for protection
Restaurant and bar risks
Economy
Alcohol use
Exterminators risks
Infections
Homeowners
Child labor laws
Construction workers risks
Equipment protection
10. Equal Employment Opportunities (EEO)
Discrimination
Sexual Harrassment
Federal Contract or Subcontract
Post EEO Poster and others
Records
Recruiting
Restaurant servers and liquor laws
Exterminators
Construction
11. Restaurant State and Federal liquor laws
Exterminator State laws
Food safety
Construction Worker
OSHA
All companies
Blood Pathogens
Employee Rules of Conduct
Business Conduct Guidelines
12.
13. 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, NJ: Pearson Prentice Hall.
Newland Jr., J. R. (n.d.). Best Choice of Business Form for Construction Contractors. Retrieved from
http://www.newlandassociatespllc.com/articles/best-choice-of-business-forms.pdf
University of Phoenix. (2011). Syllabus for BUS/415 Version 9 Business Law. (Available from the University of
Phoenix, 587 Bielenberg Drive, Suite 100, Woodbury, MN 55125)
Handout: the U.S. Equal Employment Opportunity Commission (EEOC). (2007, August). Equal Employment
Opportunity is The Law. Retrieved from http://http://www.dol.gov/regs/compliance/posters/eeopost.pdf
United States Department of Labor. (n.d.). Office of Federal Contract Compliance Programs (OFCCP): Guide for
small businesses with Federal Contracts. Retrieved from
http://http://www.dol.gov/ofccp/TAguides/sbguide.htm#Q11
U.S. Department of Labor Occupational Safety & Health Administration. (n.d.). United States Department of Labor:
Occupational Safety & Health Administration: We can help for construction workers. Retrieved from
http://http://www.osha.gov/Publications/OSHA3252/3252.html
National Club Industry Association of America (NCIAA). (2012). The Official trade organization of the nightlife & club
industry: Our industry. Retrieved from
http://http://www.nciaa.com/content.aspx?page_id=22&club_id=160641&module_id=29898
BLR - Business and Legal Resources. (n.d.). Simplify compliance drive success: Bloodborne pathogens. Retrieved
from http://http://www.blr.com/safetytips/bloodborne-pathogens
Food Service Warehouse. (2012). Restaurant Equipment and Supplies: Employment laws and labor laws in the
restaurant. Retrieved from http://http://www.foodservicewarehouse.com/education/restaurant-
operations/employment-labor-laws.aspx
United States Department of Labor. (n.d.). Summary of the major laws of the Department of Labor. Retrieved from
http://http://www.dol.gov/opa/aboutdol/lawsprog.htm
Get free legal forms. (2010). Get free legal forms: Employee rules of conduct. Retrieved from
http://http://www.getfreelegalforms.com/employee-rules-of-conduct/
Editor's Notes
Since Frank is already a wealthy investor he has a choice of can open multiple businesses in direction. Since Frank is sole owner, he has control over all assets, decisions (hours of operations, prices, and designs) No diversity - ideas, business strategies
Franchisees have separate taxes and liability because the franchisor control individual taxes and insurance