Starting a Homeopathic Cough Syrup Business

Case Study Three The paper shows how one can begin a homeopathic cough syrup business. This is because the product is more famous in your hometown and operates well than any other product in the marketplace. In the present situations, the core business entities consist of sole partnership, partnership, and corporation. A sole partnership is a form of business entity where one person is the sole proprietor of profits and management. One of the proprietor’s significances is that he or she has complete control over the whole business. Besides, it is disadvantageous since funds are limited because only one person can fund the business. Another drawback associated with a sole partnership business form is that an individual suffers losses alone and shares all the costs needed. A partnership is a form of business that includes connections among two or more peoples. Various forms of a partnership include a limited partnership, business trust, inkling cooperative, and joint venture. Several advantages are associated with partnerships such as easier to create; private sources can provide business funding, and it is possible to combine ownership and control (Cappellino, 2020). Since many peoples are involved in decision making, it is recommendable to go for a partnership business form since it offers a background for the best decisions. Divided authority is the drawback associated with the business. Therefore, decisions usually take much more time because it involves various parties. A corporation is a legal firm established from the company’s outcomes selling its shares to investors who later become the business’s shareholders or owners. Corporations include subchapters’ corporations and limited liability companies (Cappellino, 2020). The benefits of corporations include unlimited lifespan, access to funds and resources, and little liability protection. The disadvantages of corporations are that stakeholders have limited liabilities, subjection to huge taxation rates, and strict formalities that are mandatory to be followed. Product liability law refers to the business liability that deals with products that result from harm to the consumer because of a defect. Any product may have an in-built weakness, which might result in harming the consumer of the product. If such a situation happens, the organization will be accountable for a liability claim because of the defective merchandise. Before beginning to operate the business, Fred should be concerned with whether the business organization will be responsible for liability lawsuit if they select to move on with the company (Cappellino, 2020). Therefore, I would recommend the inclusion of a warning or a label to the products to offer consumers information on the adverse impacts that result from a combination with aspirin. This will ensure that consumers evade consuming an aspirin as they select to use “Fred’s Miracle Cough Syrup.” The agency law describes the connection between the agents who operate as the representatives of other individuals, government, and business, which is the principle. The agency relationship will not be applicably centered with the actions of Sam. Fred will therefore have to hire Sam as a worker who will then later turn to be a partial owner of the organization. The problems anticipated to occur because of real property is zoning laws. The business must operate under the required measures concerning establishing a home-based organization. It is a homestead because Sam and Fred stay on the farm together with their families. The law will limit different types of activities that will take place on the property, such as signage, electricity use, delivery, noise, and parking. Another problem is the license that is required to be acquired from the city. The importance of the permit is to ensure that the business operates legally. Manufacturing of the magical cough syrup will not need a formal transfer or possessory ownership rights because the landowner is the determiner of the farmstead’s actions. Fred incurs a simple interest fee on possessions, and it means that he got the right to live on the possessions for his lifespan. The 1st potential property problem that will result from using Sam’s vehicle will be vehicle liability, resulting from the vehicle’s accident. Therefore, both Fred and Sam must secure the car by having comprehensive insurance. Another issue is vehicle policy drafting, which will reduce employer liability by restricting the vehicle from delivering the organization’s product relatively than for individual use. It is recommendable to possess a policy that is free to amendment concerning the vehicle’s use. Sam’s vehicle’s use during the organization’s operations uncovers Sam and the company to liability problems such as vehicle maintenance. Fred’s responsibility is to ensure that the car is in the form to evade being sued for careless vehicle maintenance. Titling of assets will arise as the estate planning problem because of the family and business farm. Additionally, there will be a problem of knowledge reliance among themselves or online sources to make conclusions concerning the state. Family limited partnerships and trust are the estate cars that Sally and Fred can depend on if they select ownership transfer in the business and family farm to their next representatives. It is advantageous to have a family limited partnership because the agreement guarantees Sally and Fred an assurance of transferring possession of Miracle Cough Syrup of Fred to Sam as it retains control. The associated disadvantage is that it needs widespread documentation. Trusts are of much significance since Sally and Fred will secure the business from creditors and lawsuits. On the other hand, the disadvantage is the trust limits that the trustee’s powers. Therefore, it is recommendable to select sole partnership for the business entity for Miracle Cough Syrup for Fred. Because Fred’s critical aim is to permit Sam to run the business’s operations, both are better positioned to control the organization. For the experienced fraud, the organization must file a lawsuit against Jane for the family’s business fraud about the funds or to accomplish her gambling debts. Cooking the book accounts and forging the director’s signature to hide the deception action is the 2nd deception committed by Jane, contrary to the owners and business. Besides, Jane operated unlawfully by breaking the accounting values of competency, honesty, and accountability when carrying out her duties. Sally and Fred have the authorized right to file a lawsuit against Don to collaborate with Jane and act wickedly by illegally accepting Jane’s money. The filed lawsuit by Sally and Fred against Don and Jane’s fraud claims is likely to be successful because of the existing evidence of a violation of accounting ethics, cooking of books of account, director’s signature forgery, and misappropriating of funds. The legal defense that Sally and Fred can address about Jane’s written check delivered to the church includes legal check signing. Indeed, Jane, who forged the check offered at the church, proving the scenario with legal defense, will provide substantial evidence to rule against Jane. Likewise, Sally and Fred can claim that only a person who is entitled as a guarantor to the business account can agree on the transaction’s validity. Thus, in the scenario, the existing written check will not be honored or approved. Sally and Fred should consider that the provided written check is used as the supportive evidence that shows Jane is guilty of the offense. According to Jane’s actions, Sally and Fred can file a lawsuit against her for fraud, civil and forgery claims. Jane is not supposed to possess any signatory power over the operations of running the business accounts. Therefore, the misconduct of the faking director’s signature and transacting illegal business should be charged by the law court. The forms of bankruptcy presented to Sally and Fred’s business include seven bankruptcy and chapter thirteen. Chapter seven bankruptcy approves this by stating that any acquired property through fraud culprit must be considered as the business compensation unless the prevailing laws have hindered the process (Bently & Sherman, 2014). Therefore, in this instance, chapter thirteen is recommendable for application because it will help protect business closure. On the other hand, if the business owner applies for chapter seven bankruptcy, the recognized belongings must be identified as individuals and not legal entities. However, Sally and Fred’s success will depend on chapter thirteen legal considerations on incorporating the business. The consequences of the bankruptcy action will depend upon the chapter applied in litigation filling. If chapter seven is devoted to file the claim, a federal court trustee is needed to offer supervision of individuals sold assets, not let off. The money gotten from the sales of assets is provided to creditors. Once bankruptcy is settled, there is removing what the family member or an individual owes the business (Bently & Sherman, 2014). On the other hand, chapter thirteen sanctions a family member to preserve their belongings in exchange for partial or complete debt repayment. After completing debt repayment as per the set period, the filed claim against the defendant is written off. Though bankruptcy negatively impacts the business credit or an individual, chapter thirteen is recommendable for use since it offers the right option. Fred has a legal recourse of trade secret violations counter to Bob. Fred has revealed the recipe of reverse-engineered in Fred Cough Syrup business. Bob’s intentions for the revealed recipe are led by revenge rather than discovery venturing. Fred is supposed to accuse Bob based on the violation of confidential information of the business. An Initial Public Offering (IPO) is an organization that sells its products to the public for the first period, with the organization shifting from private ownership to the public shareholders. One of the IPO’s significances is the right to use public capital since it does not require being repaid and enables a business organization to purchase more inventories and supplies. For a business organization to be public, it must be conducted based on the Securities and Exchange Commission (SEC). The going public processes include hiring an underwriter, hiring an underwriting team with independent accountants, attorneys, and financial printer, and the third step involves reviewing the SEC’s period. The SEC advocates that a business should reveal all the information to the public if the company needs going public. The information leaked to the public is the description of the management analysis, insider’s information, business, financial statements, and several shares for every individual in the industry. The three recent legal, regulatory complications that might disturb a public offering are the forged checks, online disruption, and sexual discernment against Fred and the business. Thus, Tammy filing a lawsuit of sexual discernment against Fred and the business will affect public offering since Fred, and the company can be claimed against it. Therefore, the business organization will have to reveal all the necessary information to go public since SEC ensures the company tells its legal actions. Fred will have to show that Tammy was unqualified for the job by revealing her involvement with bookkeeping. It will act as a legal defense and will prove that Fred was not involved in sexual harassment. Even if Jane pursued counseling for gambling behaviors and tried to transform her connection with the family, it affected the public offering. Therefore, SEC will need the company to reveal its monetary statements to the public, which will display the faker of the checks to the church and Don. This will enable investors to question whether they should make some investments in the organization. Bob’s online sabotage will affect public offering since the business organization has to address any patent infringement. The adverse outcomes will lead to a decline of investors from making investments and consumers not purchasing the products. Fred’s business organization requires registering with the SEC to be able to go public. Then SEC will do investigations about the business’s operations, management, and financial conditions. This will facilitate decision making among the SEC on whether the company will go viral in public or not. The company will agree with government rules, including public offerings once the Securities Exchange Act has approved it. Besides, it will have to comply with the state security laws since the organization will have to reveal its management, financial information, and business operations. The recommendations to develop the company’s compliance include establishing business practices, operating as per the SEC’s rules, and establishing standards. Additionally, the strategies needed for corporate development include listing to shareholders, investing in new technology, and streamlining the systems.