Business Structure Liability and Partnership, Essay Example

Structural plan

The goal of this retail supermarket business is to bring shopping alive within the communities in which it is functioning. The main structure with respect to management consists of a general manager, 2 store manager, 3 supervisors, six sales persons, two cleaners, 3 porters and 5 laborers for packing. The design will consist of one of a typical supermarket structure. Sections will be displayed for items in categories such as vegetables and fruits, canned items (milk, coffee, creamers, juices etc). Rows carrying teas, sodas, detergents and refrigerated areas with liquid milk and frozen vegetables will be constructed. I will collaborate intimately with architects in the preliminary stages to facilitate the design according to legal requirements. A bid for the job will be offered and upon completion of that process the business initiation team will becomes involved with contractors to ensure that structured are completed according to drawing.  The architects are expected to provide me and my partners with a hard copy of the plan to prevent any legal implications during construction/ renovation of the business premises.

An integrated modeling method would be applied in facilitating ideas for this structure. It involves collaborative adaptations inclusive of partnerships and shareholders. This combines with underlying core processes in developing not only appropriate structures but sustainable efficient management of the enterprise. Ultimately, the scope and focus of the structure would encompass a retail chain store model; transportation system using vehicles to move goods/produce from warehouses to store locations; warehouse distributing centers and suppliers (Steeneken & Ackley, 1).

The anticipated design is displayed in the diagram below:

(Steeneken & Ackley, 1).

Supermarket business liabilities

Liabilities are considered a company’s obligations with respect to amounts of money the business owes to creditors from past transactions. The word payable is often written in the account title.  When matched with an owner’s equity, liabilities could also be viewed as part of the business’ assets. Another liability reflection could be a claim brought against a company’s assets due to an alleged wrong doing either to a customer, partner or business  collaborators. The business balance sheet could show assets to the tune of $200,000,  Accounts Payable of $50,000 and owner’s equity of $60,000. Business assets could emerge from creditors/suppliers for $50,000 and the owners for $80,000. These supplier/creditors could bring a claim against the business assets. However, the owner could argue that the amount remaining after Accounts Payable was paid in full ( Quinn, Bailey  & Gaulin, 12).

Amounts received in advance are considered liabilities because they are recorded as asserts. These perceptions of liabilities vary from one business to the next. In this supermarket retail venture since there is available funding without a business loan and I would be conducting all the bookkeeping, huge liabilities are less likely. Liability accounts declared on a business balance sheet such as a retail supermarket are payable accounts, salaries, wages, interests, accepted expenses, notes, income tax and other accrued payable expenses. Customer deposits, warrantee liability, unearned revenue and payable bonds are all accounted for in the retail supermarket proposed business. Since I am going to do the bookkeeping and a relative will finance the project while these liabilities are taken into accounts initially they would not be part of business’ payable accounts list (Quinn et.al, 2012).

However, important liabilities that must be accounted for in this business relates to if customers or employees fall on the premises due to water spillage or faulty construction. In this case insurance must cover these costs and are payable in advance liabilities. Another significant liability relates to destruction of property by fire or malicious endeavors or natural disaster. This liability must also be accounted for through by insurance coverage. Loss of produce due to spoilage or accidental damage in packing, transportation or while on the shelves is a liability, which must be accounted for too in this retail supermarket business. Business insurance policies specifically related to retail supermarkets can be obtained from reliable agents.

Partnerships

In the business proposal explained above if it functions as a sole partnership, the liabilities of the business are solely that of owner/s because they are the proprietors as well. So there is no sharing of profits with anyone else. With respect to the general partnership input would mean sharing the liabilities equally. If I enter the business with a friend or relative and the finance this retail store supermarket entirely they have the sole partnership power. The liabilities mentioned above are shared between them except a contract specified differently.

In limited partnership are considered limited liability partnerships whereby the partner owners through a contractual agreement decide the specific portion of liabilities each will carry. In the anticipated liabilities section preceding this one, a number of liabilities were mentioned implicating the retail supermarket business structure. Owners in a limited partnership business relationship have a wide range of options in selecting the most appropriate liabilities suitable for their investment. A corporation is owned by shareholders, but liabilities are carried by the corporation entity and not the stakeholders.

Works cited

Quinn John; Bailey Joseph & Gaulin David. Law Firm Accounting and Financial Management (Law Office Management) Law Journal Press. 2014 Print.

Steeneken Frank; Ackley Dave. A Complete Model of the Supermarket Business. Accessed on November  23^rd, 2015 from http://it.businessprocesstrends.com/publicationfiles/01-03-2012-ART-Supermarket%20Article-steeneken-Ackley%20111226.pdf