Running Head: DISCUSSION BOARD FORUM 3 REPLY 1
According to the original case study, Shania’s husband Marvin was willing “to
make a contribution of capital to the business, but has no interest in participating in
its operation or management.” I’m going to make a couple of assumptions in my
answer to this forum post and somewhat embellish the “origin story” of Shania and
Marvin. Assumption #1: Marvin currently has a day job. Assumption #2: Shania and
Marvin are in a good place in their marriage and Marvin is excited to support his
wife in her endeavor, but wants to maintain some separation from the business itself
and continue to work a conventional job in case things don’t work out.
There are some pros and cons with working with a spouse when starting a
business. Ecclesiastes 4:9 – 10 states, “Two are better than one, because they have a
good reward for their toil. For if they fall, one will lift up his fellow. But woe to him
who is alone when he falls and has not another to lift him up! (ESV)” Clearly, the
Bible lays out why having a partner is a wise decision.
Having Marvin partner with Shania means they share the same goals and
values. They know each other’s priorities. They can celebrate successes together and
create a deeper understanding of each other. However, being in business together 24
hours a day, seven days a week comes with its own challenges. It’s harder to “leave
work at work” and stress built through the day can find a way into the home (Evans,
2016). It seems Marvin and Shania talked about these pros and cons and decided
that it may be best if Marvin supports his wife financially, emotionally, and
spiritually; allow Shania the space and freedom to create her own business, knowing
Marvin is behind her 100% without physically being in the coffeehouse each day.
DISCUSSION BOARD FORUM 3 REPLY
With that said, the easiest way for Marvin to contribute capital and not have a
connection to the coffeehouse would be to simply gift the money to Shania for
operating capital. There’s no obligation to Marvin. If Marvin were to treat this as a
business loan, he would need to create forms much like a bank; a signed agreement,
a promissory note, and repayment schedule (Fitzpatrick, 2015). Doing this connects
Marvin directly to the business and makes Shania a debtor to Marvin. This could
cause added stress to a marriage.
Gifting the money directly to Shania could be less stressful. There’s no
obligation for Marvin to be directly involved in the business and there’s no pressure
on Shania to pay the money back, although as a show of good faith, Shania could
make an effort to treat it as an investment and pay Marvin back as if he were an
invested partner. According to the IRS for 2018 and 2019, Marvin can gift Shania up
to $15,000 per year without paying a gift tax (Frequently Asked Questions on Gift
Taxes, n.d.).
So to be as separate as possible from the business while also supporting
Shania, I think Marvin would do better to gift the money as opposed to lending her
the money. And maybe he can help out at the coffeehouse on weekends as another
show of support.
The second part of this week’s discussion forum reply asks us to fast forward
Shania’s coffeehouse business and imagine she has expanded to 20 employees and is
looking to promote someone to night shift supervisor. Shania wants to promote an
ethnic minority to show the community how inclusive her business has become.
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DISCUSSION BOARD FORUM 3 REPLY
If Shania is solely looking at the race of the person she intends to promote,
the answer is clear. She can’t. According to the US Equal Employment Opportunity
Commission (EEOC), “the law forbids discrimination when it comes to any aspect of
employment, including hiring, firing, pay, job assignments, promotions, layoff,
training, fringe benefits, and any other term or condition of employment
(Race/Color Discrimination, n.d.).”
Shania must hold everyone to an equal standard when it comes to
employment. That means promotions should be based on merit and performance;
things employees can control. If a person of color happens to be the best person for
the promotion based on established employment goals and expectations, then she’s
following the law. Promoting someone based on race could open Shania up to an
EEOC investigation if an employee not of that race feels they were discriminated
against and passed over for a promotion simply because they were the wrong ethnic
group.
As a Christian business, I can understand Shania’s intention with wanting to
promote a person of color. Race is a very divisive issue, sadly, even within the
Christian community. Promoting someone of color can show the community she’s
trying to bridge that gap. However, as an overtly Christian business, Shania must
operate above reproach. In 1 Timothy3:2a it states, “Therefore an overseer must be
above reproach (ESV).” While this and the following verses pertain to the
qualifications of church pastors and elders, it can have implications as employers. In
essence, Shania is an overseer of her employees. Promoting someone according to
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DISCUSSION BOARD FORUM 3 REPLY
the law, based on her employment goals and expectations can be a morale boost to
her employee base, but also send a positive message to the community.
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DISCUSSION BOARD FORUM 3 REPLY
References:
Evans, L. (2016, February 10). The Pros and Cons of Working With Your
Spouse. Retrieved December 11, 2018, from
https://www.entrepreneur.com/article/270599
Fitzpatrick, D. (2015, March 25). Raising Private Money: Gifts, Loans, and
Equity Investments. Retrieved December 11, 2018, from
https://www.nolo.com/legal-encyclopedia/raising-private-money-gifts-loans-
30078.html
Frequently Asked Questions on Gift Taxes. (n.d.). Retrieved December 11, 2018, from
https://www.irs.gov/businesses/small-businesses-self-employed/frequently-asked-
questions-on-gift-taxes#2
Race/Color Discrimination. (n.d.). Retrieved December 11, 2018, from
https://www.eeoc.gov/laws/types/race_color.cfm
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