WK3 Discussion Post Peer Repsonses.docx

WK3 Discussion Post Peer Repsonses.docx - Hi Adjua...

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Unformatted text preview: Hi Adjua, Excellent job responding to this week’s discussion post as it pertains to the challenge’s part-time entrepreneurs face while working full-time. You were able to examine the risk and ethical implications a part-time small business owner would encounter if he or she disregarded the legislation that governs one’s industry field. Understanding federal and state laws that governs one’s business is imperative because if a person neglects such laws’ consequences of fines and litigation are inevitable. For example, a business owner is responsible for withholding federal income taxes, and if the business has employees, payroll taxes are to be paid to the IRS. However, if the entrepreneur fails to pay the IRS it can lead to criminal charges and under Sec. 7202, uncollected taxes are a felony and punishable by up to $10,000 fine, five years in prison, or both (IRS, n.d.). In particular, I’ve gained valuable insight that an part-time business owner should spend the majority of his or her time doing research in order to avoid severe consequences. Another perspective, I’ve gained from your analysis is a way to possibly resolve other less severe situations such as zoning permit by requesting a variance. As Katz and Green (2014) imply that If a small business owner is able to obtain permission from the federal and state government it minimizes the problems one may face later on if authorization was not granted. Overall, a small business owner should constantly conducted research in his or her area of industry regulations to keep abreast of upcoming or newly enacted laws to keep out of trouble. References IRS. (n.d.). Business Taxes. Retrieved from Katz, J., & Green, R. (2014). Entrepreneurial Small Business. New York, NY: McGraw-Hill Education. Hi Barry, Thank you for your thoughts on this week’s discussion post. You’ve made an interesting point about being able to finance the business and not take away from home income in that a part-time entrepreneur should make sure he or she is not living beyond one’s means. Usually, living beyond one’s means leads to financial problems which could evoke desperation in a small business owner to use unethical practices, while working his or her full-time job and part-time small business venture. For instance, a 1997 research conducted by Joseph T. Wells, on Occupational Fraud and Abuse found, that employees who had financial difficulties were more likely to embezzle or commit fraud to meet his or her financial obligations (Wells, 1997). From this perspective, the ethical implications the part-time small business owner would have committed is fraud against one’s employer and the organization to meet the financial obligations of family, personal needs or the small business venture. In order, to overcome such temptation, a part-time business owner should assess his or her finances using a feasibility test. In particular, Kat and Green explain that using the financial feasibility centers explicitly around the monetary parts of the analysis. It surveys the efficient practicality of a proposed endeavor by assessing the startup costs, working costs, income, and making a forecast of future performance (2014). Thus, using the feasibility analysis offers small business owners the opportunity to correct flaws and remove limitations before committing time, money, and business resources to an idea that may or may not work as the entrepreneur had intended. References Katz, J., & Green, R. (2014). Entrepreneurial Small Business. New York, NY: McGraw-Hill Education. Wells, J. T. (1997). Corporate Fraud Handbook: Prevention and Detection. Hoboken, NJ: John Wiley & Sons. ...
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