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Business Entities, Laws, and Regulations - Research Paper Example

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The aim of this paper "Business Entities, Laws, and Regulations" is to assess the factors to be considered as well as the risks involved in setting a new entity. It considers to studied focusing on the various aspects of a business including its finances, promotions, legal requirements…
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Business Entities, Laws, and Regulations
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Download file to see previous pages Lou and Jose have planned to open a sports bar and restaurant, but they seem to have insufficient funds to support their business plan. Miriam, an investor, wants to provide capital to start the business on a partnership basis but has no time to participate in the day to day affairs of business. Lou and Jose have the option of either to accept the proposal of Miriam or to take loans from other institutions as they are short of fund. It can be stated in this respect that it will be profitable for Lou and Jose to accept the proposal of Miriam which would facilitate the sufficiency of the fund in return of a certain percentage of ownership, thus reducing the debt as well as interest rate risks. However, it is worth mentioning that prior to launching a business as a partnership concern, legal agreements should be signed explicitly documenting the rights and liabilities of each member. The other most important criteria in the bar and restaurant business are to acquire the license to serve alcoholic beverages to the customers. In addition to the alcohol supplying license, the entity should also acquire entertainment license from the local government which includes the permit to broadcast sporting shows on large television screens along with facilitating live amusement activities and dance performances. Since the business requires heavy investment in furniture, décors, and other types of equipment, necessary investments should be made in terms of insurances so as to avoid any risk related to these factors. ...Download file to see next pagesRead More
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