"TIME OUT $-$ SPORTS BAR" $-$ Your new business venture:

You decide to open up a small sports bar $/$ tavern at the local mall. You name your business "Time Out $-$ Sports Bar" and file the "doing business as$"$ certificate with the State to legally operate under this name. You rent space in the local mall, buy the equipment, furniture, and supplies. You create a marketing plan. You fill out the paper work to get a tax identification number for your business. You obtain liability insurance, Workers Compensation insurance, and make sure your business is compliant with all applicable laws and regulations $($including the required liquor license$).$ You hire $3$ full time employees and $4$ part time employees. After a few months of hard work getting everything organized and ready to serve customers, you finally open for business. Your first day is a huge success. The local paper comes out and writes a story on you and your business. The review in the paper is great, and during the next week sales increase every day.

At the start of the second month of your business, however, a mishap happens. Specifically, one of your employees $($your bar tender$)$ is drinking on the job and gets so drunk that he slips and falls and knocks one of your customers off the bar stool. The customer falls off the bar stool, hits his head on the ground, and an ambulance has to take the customer to the emergency room. The drunken employee who slipped is also injured because he fell to the ground hurting his back and breaking a finger. Both the customer and employee go to the hospital to receive treatment for their injuries. After a few months, both the customer and employee fully recover.

Answer the following questions based on the fact pattern described above. You are NOT required to use the IRAC system $-$ but please make sure you specifically answer the question asked, and explain your answer.

Question A $(3$ Points$)$:

What type of business organization$/$entity is your business $-$ "Time Out $-$ Sports Bar"?

Question B $(5$ Points$)$:

If the customer that is injured decides to file a lawsuit and sue the business, Time$-$Out Sports Bar, because of the mishap to recover damages for his injuries, are you $($as the owner of the business$)$ personally liable for damages if the customer wins the lawsuit? Explain your answer.

Question C $(4$ Points$)$:

Assume that instead of you owning $100\%$ of the business, Time$-$Out Sports Bar, it is owned by you and your best friend $($you own $75\%$ and your friend owns $25\%).$ In this case, what type of business organization$/$entity is Time$-$Out Sports Bar?

Question D $(4$ Points$)$:

Based on your answer in Question C above, does your answer to Question B regarding your potential for personal liability change? Explain your answer.

Question E $(3$ Points$)$:

Is there anything you could have done differently to help protect yourself from being sued personally?