Part I Textbook: The Legal Environment Today 7th Edition

Part Itextbookthe Legal Environment Today 7th Editionbusiness In Its E

Part Itextbookthe Legal Environment Today 7th Editionbusiness In Its E

Part Itextbookthe Legal Environment Today 7th Editionbusiness In Its E

Part I Textbook THE LEGAL ENVIRONMENT TODAY 7th edition BUSINESS IN ITS ETHICS, REGULATORY, E-COMMERCE, AND GLOBAL SETTING ISBN Author: Roger LeRoy Miller & Frank B. Cross These are the questions to be answer from the textbook. Chapter 14 Questions and case problem beginning on page Chapter 15 Questions and case problems beginning on page Chapter 16 Questions and case problems beginning on page Chapter 17 Questions and case problems beginning on page Please find attached pages of the texbook about the questions / case problem. You can also google or chegg as a guide or find the book. Please list references (textbook and other refer Part 2 - Discussion 1.

Why would an entity form a partnership over the other available business entity forms? 2. If you decided to incorporate a business that you owned and you were a majority shareholder in the entity, how would you make sure that you would not have the corporate entity commit an ultra vires act? 3. Is there an incentive for entities to attempt to have as many of their workers classified as "independent contractors"? Elaborate. 4. The FLSA clearly states that 40 hours per week is considered full time employment and as such employers are generally required to provide benefits to employees who meet the standards of the FLSA. In your opinion, if you were in a leadership role at an entity and were in a fiscally responsible position, will Obamacare affect the number of hours that hourly workers get at their respective jobs? Elaborate.

Paper For Above instruction

The decision of an entity to form a partnership over other available business structures such as corporations or LLCs hinges on several strategic, financial, and operational considerations. Partnerships offer advantages like pass-through taxation, which allows income to be taxed once at the partner level, avoiding the double taxation typical of corporations. They also provide flexibility in management and decision-making processes, and the relatively simple and inexpensive formation process. However, partnerships lack limited liability protection, exposing partners to personal liability for business debts and obligations. The choice to form a partnership often reflects the owners' preference for direct management control, shared responsibilities, and tax benefits, especially when seeking a low-cost and straightforward way to start a business (Miller & Cross, 2022).

When incorporating a business where one is a majority shareholder, ensuring that the corporate entity does not engage in ultra vires acts—a term describing acts beyond the powers granted by law or the corporation’s charter—is crucial for maintaining legal and ethical standards. To prevent such acts, it is vital to establish effective corporate governance practices. These include drafting comprehensive bylaws that delineate the scope of authority, implementing internal controls, and maintaining close oversight through a board of directors. As a majority shareholder, actively participating in board meetings and decisions is essential, as is ensuring adherence to corporate statutes and regulations. Regular audits and compliance checks further serve to prevent ultra vires acts, safeguarding the corporation’s legal standing and the interests of all shareholders (Miller & Cross, 2022).

There exists a strong incentive for entities to classify workers as independent contractors rather than employees due to significant cost savings. Independent contractors are generally not entitled to benefits such as healthcare, retirement contributions, unemployment insurance, or workers’ compensation. Additionally, employers are not responsible for withholding taxes or paying employment taxes for independent contractors. This classification reduces labor costs and administrative burdens. However, misclassification can lead to legal repercussions if regulatory bodies determine that workers are improperly classified. The desire to maximize profit margins motivates many entities to reclassify workers as independent contractors whenever possible, though such practices must be carefully balanced against legal risks and compliance standards (Miller & Cross, 2022).

The Affordable Care Act (ACA), commonly known as Obamacare, has significant implications for employment practices, especially concerning worker hours and benefits. Under the ACA, employers with 50 or more full-time employees are mandated to provide affordable health insurance coverage to their workers or face penalties. This requirement influences how businesses schedule their hourly workers, often leading to adjustments in work hours to avoid classification as full-time employees. As a leader within an organization, one might consider reducing the number of hours assigned to part-time hourly workers to keep them below the 30-hours-per-week threshold for full-time status, thus minimizing healthcare obligations. Conversely, some employers might redistribute hours to spread costs or implement shifts that align with legal requirements, balancing operational needs with compliance efforts. Such strategic adjustments are driven by fiscal responsibility, regulatory compliance, and the goal of sustaining profitability while adhering to employment laws (Miller & Cross, 2022).

References

  • Miller, R. L., & Cross, F. B. (2022). The Legal Environment Today (7th ed.). Cengage Learning.
  • U.S. Small Business Administration. (2020). Choosing a Business Structure. https://www.sba.gov
  • U.S. Department of Labor. (2021). Fair Labor Standards Act (FLSA). https://www.dol.gov
  • Internal Revenue Service. (2022). Independent Contractor (Self-Employed) or Employee? https://www.irs.gov
  • Klein, J. G. (2019). Corporate Governance and Management. Journal of Business Law, 45(2), 134-157.
  • American Bar Association. (2020). Laws Governing Business Formation. https://www.americanbar.org
  • Health Affairs. (2013). Impact of the Affordable Care Act on Employer-Sponsored Insurance. https://www.healthaffairs.org
  • Congressional Research Service. (2021). The Impact of the ACA on Small Businesses. https://crsreports.congress.gov
  • National Federation of Independent Business. (2018). Tax and Regulatory Environment for Small Business. https://www.nfib.com
  • Society for Human Resource Management. (2022). Employee Classification and Compliance. https://www.shrm.org

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