Business Could Be Structured. The Term Paper

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Initially, a basic one-person extermination business could use the sole proprietorship structure, but Frank's ambition demands the flexibility and professionalism of a corporation. The corporate structure will allow Frank to access capital markets and/or attract investors, while simultaneously allowing him to remain in control of the company. Only the corporation structure offers Frank this flexibility and limited downside risk. Corporations are subject to double taxation, but Frank can use the structure to pay his investors when he needs to. This business will be subject to EPA regulations with respect to the pesticides and insecticides that are used, and there may be city or state licensing involved. Otherwise, only the IRS and the laws with respect to incorporation need be considered. There are significant risks for Frank, most of them financial as the cost of building out such a business is going to be tremendous. There are also risks associated with the use of the poisons in the business, and these will also need to be addressed.

The construction company must bear in mind a number of laws with respect to this hiring decision. The least challenging is Nick. While the company cannot discriminate against him because of his epilepsy unless it had reason to believe that he was going to be unable to perform the job safely, he is not qualified by virtue of his lack of experience, so he would not be hired. If Surebuild has fewer than 15 employees, it would also be exempt from the American Disability Act.

Michelle cannot be discriminated against because of her apparent pregnancy, as per the Pregnancy Discrimination Act. Michelle is otherwise qualified for the job. In her situation, however, she may be unable to perform the job because of the risk to the health of her and her baby. Mei-Lin will need to tread carefully, but if she has reason to believe that Michelle cannot physically perform the task, she should not make an offer to Michelle.

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Felipe does not speak English. Mei-Lin could refuse to hire him because he does not meet the basic requirements of the job. If the site is generally a Spanish-speaking site, he could possibly be hired. However, there are safety considerations that must be taken into account if the site language is English. Felipe could be unable to perform the job safely until he has better command of the English language.

Eric is an experienced operator but because of his lack of education he does not meet the requirements for the job. Mei-Lin can therefore refuse to offer him a position. The Age Discrimination Act of 1975 does not apply to Surebuild since it does not receive federal financial assistance. The education requirement is not essential to performing the job safely. Therefore, Mei-Lin could overlook his education. Alternately, Surebuild could offer Eric the job contingent on his acquisition of a high school equivalency. If the company did this, no other candidate would be able to claim that Eric was given preferential hiring.

It is recommended therefore that the company hire Eric, contingent upon his completion of high school equivalency. Neither Nick nor Felipe is able to function safely and effectively on an American construction site, due to lack of experience and lack of English respectively. If Michelle is pregnant, she would be physically unable to perform the job. If she is not, she could be a good candidate and she is fully qualified. However, hiring Eric may be the safer option, as Mei-Lin would not need to address the issue of Michelle's apparent pregnancy.

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