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The type of business entity that Lou and Jose plan to start is cooperative. The business can be categorized as a cooperative since it will be owned by Lou, Jose and Miriam where each one of them will benefit. The three jointly own the business to meet their social and cultural needs as well as meet their goals via the democratically owned and controlled enterprise. This business can also be categorized as a cooperative since Miriam has a greater share. The profits will be shared as dividends where each member will be paid according to the role played by each and every member of the business. Cooperatives are taxed at the owner's level rather than at both cooperative and owners level (Waddell & Handford, 2009).

To start a hotel business, there are some rules and regulations that must be considered. These rules govern the mode in which hotel owners deliver services to their clients. Acquiring a license from the concerned authorities is the main rule that hotel owners ought to observe. The business should not be operated without involving the concerned authorities. This means that the authorities are also responsible for rating a hotel as a five star or otherwise. The public health act is another rule that ensures that the health of the people is taken into consideration. This means that the food and other services offered in hotels are of good quality. The business owners should ensure that they run the business democratically to ensure that differences will not erupt forcing them to close down the business. This means that the roles of each of the key players should be well defined. Another risk that can compromise the success of the business is to ensure that they observe all the acts so that they can continue operating the business well.

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Extermination business           

The type of business that Frank plans to open is sole proprietorship since he plans to start it alone (Waddell & Handford, 2009). This means that the profits acquired from the business will not be shared while on the other hand the owner takes the responsibility for any loss acquired. Frank will own all the animals he will keep while he will be responsible for all debts. The degree of liability is more since he is acting alone. The owner of this kind of business is required to pay taxes four times in a year instead of once per year. The mode in which such businesses are operated is dependant on the owners, the decision making process is faster as compared to other types of businesses since there are no consultations to be made. Frank will have the freedom to change the mode of operating the business hence he has the opportunity to try new business ideas as he wishes.


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One of the rules of starting this business is that one has to acquire certification and licensing. This certification is a proof that Frank is qualified to undertake this kind of work. The certification process entails contacting the relevant government agencies. This line of work involves dealing with chemicals hence it requires special training.  Another rule that governs the operations of this business is public safety (Waddell & Handford, 2009). The owner of the business is expected to ensure that he uses the chemicals in the right manner. This ensures that these chemical do not turn into a health hazard to the public. Untrained personnel may use the chemicals wrongly hence bearing negative effects to people living nearby. Public safety is a priority hence the authorities want to ensure that the chemicals used by extermination business owners do not affect them. Risk factors that can affect this kind of business are poor decision making since one may look at an issue from one perspective and the risk of incurring losses alone.

Construction Scenario

Employments law protects and addresses the issue of workers in terms of their welfare in the workplace. These laws also govern the mode in which employers select their workers (Guerin & DelPo, 2009). These laws can also be called federal laws that act to prevent job discrimination. In this scenario, Michelle a 35 year old woman has all the qualifications that Mei-Lin is looking for, the only issue that has been raised is that she seems to be pregnant. Pregnancy based discrimination states instances of pregnancy and childbirth should not be seen as serious since they are just like any other temporary illness. Under this law, she qualifies to be employed since the fact that she is pregnant does not mean that she cannot perform her roles well according to the employment laws (Guerin & DelPo, 2009). Her state should not be a disqualifying factor hence she has the right to report to the concerned authorities in case company fails to employ her on the basis of this state.

Nick is a 23 three year old college graduate who is epileptic. He is qualified to work in this company since he has met the maximum qualification that was required. The disability act protects individuals with physical or mental problems (Guerin & DelPo, 2009). Given that his condition can allow him to perform major life activities such as walking, eating and using the five senses well, he has all it takes to take up this position. These activities can also include things like having an immune system that functions well and good cognitive abilities. The law protects any individuals with disabilities but bearing the required qualifications to undertake and effectively perform the functions of a given job.

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