Class Is a Legal Issue in Business

Question 1 

From the case study, it is apparent that Shania is contemplating opening a coffeehouse. As a Christian, she believes that it would work out for her if she opened a Christian coffeehouse located in close proximity to Denver, Colorado. From the case study, we also learn that Marvin, her husband, is not concerned with the operations of the coffeehouse. However, he is interested in making some investments. In advising her, I would ask her to classify her business as a limited liability company. Such a business comes with several advantages that Shania can benefit from. First, it is easy to set up. It is associated with fewer authoritative obligations, and thirdly, it will enable Shania to isolate her own advantages from the enterprise. Simply put, in a limited liability company, the owner of the entity will not be held liable for the business obligations (Veit, Clemons, Benlian, Buxmann, Hess, Kundisch, & Spann, 2014 p. 52-53). If Shania decides to go with this business model, she will maintain her control over the management decisions that the company does. 

Also, all of her assets will be under protection. Any loss that occurs will be mitigated through the intervention of the business and any possible capital contribution. Under this dispensation, she can also have members joining the business. However, it is crucial for the members to develop an operating agreement that defines a host of factors, including the voting rights, responsibilities, and the overall management of the company. As such, this will ensure that roles and responsibilities are clear from the start. A limited liability company will allow his husband to continue with his investments and also contribute to the growth of Shania's company as a member. Shania will also have the discretion of changing the structure of the business contingent to accomplishing all the pending goals of the business. 

Question 2 

From the case study, it is apparent that Shania lacks any appropriate experience required to undertake business. With the business at its inception, achieving all the set objectives would be a difficult thing to do. Therefore, a franchise would be the most appropriate model to take. In her bid to rise to the top, Shania should open doors to working with the established business. A franchise fundamentally involves a trading agreement pitting the supplier and the retail outlet. It is often used in the service industry where the retail outfit receives the support of the supplier in return for utilizing the franchiser’s brand in addition to other marketing tools (Baden-Fuller & Mangematin, 2013 p.420). A franchise is well-poised to generate more profits and sales compared to a business that is beginning from scratch. The franchise will have the benefit of an already well-known brand name. Therefore, Shania must, however, exercise caution in selecting a reputable franchise for her business to excel. 

As a new business owner, Shania must understand beyond any reasonable doubt that it would be difficult for her business to remain solid enough, especially in the wake of the competition present in the market. Therefore getting an opportunity to work with established business will assist her to grow to greater heights. Shania will also need to understand the basic principles guiding the operations of a franchise. First, as a franchisee, Shania will need to pay remittance equivalent to a particular percentage of the gross sales that she makes. If she fails to meet these conditions, one possible outcome would be the termination of the agreement. Franchising business is covered by both state and federal laws. It is therefore critical for Shania to understand how these laws operate to avoid falling into a legal pitfall once the business has begun. However, this would be the best option for her to consider. 

Question 3 

After searching the database in the state of Colorado, the name that Shania desires to use is available. If she decided to go with the name "The Gathering Place" it would be trademarked. From the research, it remains apparent that there are comparative names in the database that significantly matches what she has already picked. For the business to accomplish its goals, it is fundamental to select names that are unique and exceptional. Going for the obvious names would lead to ambiguity and could easily cause confusion or adversely impact the company's competitive advantage. Therefore, I would not advise Shania to go for the name "The Gathering Place" as the proposed business name. Other than causing confusion, it would affect the business in the long run as it tries to emphasize its competitive advantage (Veit et al., 2014 p. 54). Therefore, she should try to come up with a different name that exudes a sense of simplicity and memorability. 

Question 4 

Kubasek, Browne, Barkacs, Herron, & Dhooge, (2016) asserted that when it comes to selecting the employees that one wants to work for them in a company, quality remains one of the most significant aspects to consider (p. 87). As a Christian, Shania should be at the forefront in looking for people that can demonstrate certain values, including honesty, integrity, and hard work (Dockery, 2012 p.21). However, refraining herself to the religious realms alone might also deny her the best possible employees that could work in her business outfit. Shania must remain cognizant of the discriminatory employment laws to ensure that religion, race, or any other factor does not impact her decision to employ. Therefore, I would advise Shania to go for workers who are genuinely interested in working for the business. Her focus should begin and end on individuals willing to fulfill the objectives that she has set for her enterprise. After going through the case study, it is important to note that Carlos and Kelsey both have some pros and cons that should be understood properly. 

Although Carlos is a non-Christian, he is determined to work with Shania. However, from his sentiments, it remains obvious that he is a nonbeliever. The Bible in 2 Corinthians 6:24 warn against working with the nonbelievers by saying, "Do not be unequally yoked with unbelievers. For what partnership has righteousness with lawlessness? Or what fellowship has light with darkness." This Bible verse will play a significant role in helping Shania to come up with an amicable solution as regards the personality and suitability of working with Carlos. Kelsey has off late converted to Christianity, but her husband remains a non-Christian. She is looking to work for Shania because she needs to empower herself and more importantly, find something that will remove her from home. However, this is against the wishes of her husband, who wants her to remain and take care of the children at home. However, this is unfair because the children are old enough to take care of themselves 

Kelsey's husband should stand by her wives side and support her in everything she wants to do. In Mathew 12:30, the Bible says, "Whoever is not with me is against me, and whoever does not gather with me scatters." Being in a marriage means that you are bonded to each other, and as such, support should remain a two-sided affair (Dockery, 2012 p. 23). Shania can, therefore, take the gamble and employee Kelsey hoping that she will transmit her determination from home to work. On the other hand, Carlos should not be discredited for his religious stance. However, after employment, he should be placed on probation in the areas that have the least destructive impact on the company. 

References 

Baden-Fuller, C., & Mangematin, V. (2013). Business models: A challenging agenda. Strategic Organization, 11(4), 418-427. 

Dockery, D. S. (Ed.). (2012). Faith and learning: A handbook for Christian higher education. B&H Publishing Group. 

Kubasek, N. K., Browne, M. N., Barkacs, L., Herron, D., & Dhooge, L. (2016). Biblical worldview edition of dynamic business law. N. J. Kippenhan(Ed.). New York, NY: McGraw Hill Education. 

Veit, D., Clemons, E., Benlian, A., Buxmann, P., Hess, T., Kundisch, D. ... & Spann, M. (2014). Business models. Business & Information Systems Engineering, 6(1), 45-53.