Business Entities, Laws, and Regulations Paper

Topics: Strategic management, Management, High school diploma Pages: 5 (1828 words) Published: March 25, 2013
Malia Thao
Business Entities, Laws, and Regulations Paper
Shenia C. Kirkland, Esq
May 17, 2011

Every business has rules and regulations that must be obeyed and respected. These laws are made up not to restrict business from running the way they want to but to keep equality and safety as a priority. In our modern age the safety and equality of all individuals are held as first priority and in order to protect everyone rules and regulations are made in order to ensure safety. Another important aspect is for individuals to understand the risk and problems that can arise from owning a business. Everyone that owns or plans to own a business must understand that financial problems as well as criminal charges can result from poor practice and failed maintenance. A few scenarios have been chosen to exemplify how to resolve issues that may arise Restaurant/Bar Scenario

A sports bar can be a profitable business is it is well maintained and managed accordingly. As is every business the owners and investors must comprehend the risks and responsibilities that come with the territory. There are many responsibilities that require Lou and Jose to surrender most of their time in order to maintain the business. They also have to take into consideration the laws and regulations issued by their state Food and Beverage Associations. The alcohol permit alone will cost them a hefty fee and there is an annual renewal fee. On top of the all the permits, the two must be able to have a menu, inventory sheets, hire a staff, purchase all necessary equipment and pay rent. These things are essential to just begin. Lou and Jose must be able to present the concept and cost in a well formed business plan in order to convince anyone to give them money.

If they team is able to get the money for the business then they will first have to find a good location. Location comes with a demographic of potential customers. If they were located in a rural community they would have to adjust the business concept to cater to the people by making their bar look more welcoming with pictures of old pioneers, have NASCAR playing on the television, and play country music. Though it seems like a stereotype, it is really a business strategy. Location can play a major role in how they would want to run their business.

Every business must respect and obey the food laws. The state of GA requires all business that serves food pass a safety inspection. The building must be well ventilated and maintained, all kitchen equipment must be in proper working condition, and all food storage units must be able to hold any perishable food at the correct temperature of either below 32 degrees Fahrenheit or above 135 degrees Fahrenheit. All chemicals must be placed in a dark dry area and away from the food. Sanitation and sterilization of eating utensils, plates, and storage containers must be up to par along with how they are stored. Even the chemicals used in the dish washer must be tested to ensure it is at the proper level to legally wash dishes. These things are all judge by a state issued inspector and they are allowed to come into the restaurant at any time, without notice, and if the owner refuses they can be shut down. After the inspection is done the restaurant is graded on a list filled with a variety of possible wrongs and given a score. The score sheet must then be placed in an area that is clearly visible to the customers. If the score is not close to 100, customers would think twice about dining in a restaurant. It is a harsh reality and Lou and Jose need to understand all the risk.

If Lou and Jose are able to start their business they can potentially make a good profit. They do need to understand that their business can fail if they don’t keep up with all the duties that the restaurant requires. It is rumored that 90-95% of businesses fail within their first year but in actuality “research also shows that the failure rate is only about 59 percent for a...

References: Georgia Department of Human Resources. (n.d). RIGHT FROM THE START MEDICAID. Retrieved from
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