Mickey And Sam

Mickey and Sam want to expand to other cities, hire employees, and raise capital for their growing business. Explain what you would recommend that they do at this time to achieve their business goals and why? When expanding a business it is important to understand all potential risks that might come from hiring employees, and obtaining new capital.

There are many different ways of gathering capitol, but a common way is thought a bank. When hiring new employees a firm must follow Fair Labor Standards Act of 1938. This law, “sets standards for the minimum age an employee can be, the minimum wages an employee can earn, and the rate at which an employee is paid.” (Liuzzo, p528) Depended on the city or state where they want to do business would

He meets with various investors and promises them a 10% return on their investment in 3 years if they will invest $100,000 in the Tours, Tours and More Tours business. Mickey meets with eight investors, and they each give him a $100,000 investment within one week. Sam is concerned about these investments. Sam has come to you for advice. Sam asks you, "Is Mickey committing any crimes when he meets with these investors and promises them returns on their investments?" How would you respond? Explain your answer. When making a promise to any investor it is important what you say or agree too by agreeing to a 10% return on their investment in 3 years is a gamble. I would first ask Micky if he got the contact in writing, and what does it say the consequences would be if he could not pay them back at a rate of 10%. An “investor is a person that allocates capital with the expectation of a future financial return.” (n. Investor, 2018)

Mickey is not breaking the law by meeting with more than one investors unless a written contract says their could only be one investor. I would ask him what level of involvement does each investor want, to see if it changed the LLP in any way for Sam sake. Depending how the LLP was set up Mickey could have been overstepping his role by looking for investors