Page 197 - Business Principles and Management

project:
MY BUSINESS , INC.

PAYING TAXES AND MEETING REGUL ATIONS
Regulations and taxes harm businesspeople most often when they are not
aware of them or do not understand them. In this chapter, you will study
the effects of local, state, and federal laws on your business.

DATA COLLECTION
1. Identify the city/county office you will need to contact about local
zoning regulations, licenses and permits, and taxes and fees.
2. Identify an information source (city booklet or Web site) on the legal
procedures necessary to start a new business in your city or state.

ANALYSIS
1. Analyze the information you collected in the Data Collection sec-
tion above. Outline the legal procedures you would have to follow
and identify the permits and licenses you would need to start your
juice bar. List the problems you might have in adhering to the legal
requirements.
2. The legislature in your state has just increased the sales tax from
4 percent to 6 percent of total sales. This will cause you problems
because of the way you have priced your products. In order to
make prices easier to remember and to simplify making change,
you priced your products as shown below to include the 4 percent
tax. (Do not be concerned if these are not the same products or
prices you have previously identified for your juice bar.)
Large one-variety juice/yogurt mix $3.75
Small 3-juice combo 2.50
Vitamin/mineral supplement .60
Turkey sandwich 5.25
Bagel with cream cheese 1.25
Nutrition bar 1.90
It will be difficult to collect the additional 2 percent for sales
tax and keep your pricing method. How will the sales tax increase
affect your business? Evaluate several methods for dealing with the
tax increase. Define your new pricing structure.
3. To reduce your start-up costs and to find a business location with
a large number of potential customers, you have decided to rent
a mobile cart in a large local mall in which to start your juice bar.
Many fast-food business owners in your city are concerned that if
mobile carts are allowed to operate, they will take business away
from the other restaurants. They have approached the city council
to pass a zoning regulation to prevent food from being sold from
mobile carts, suggesting that it might be a health hazard. What
actions can you and the owners of other similar businesses take to
prevent the zoning law from being adopted by the city council? If
the law is passed, how will it affect your business?

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