Question: You and nine of your wealthy friends decide to purchase
You and nine of your wealthy friends decide to purchase a local minor league baseball team. The purchase price is $15 million, 60 percent of which you contribute to the business as capital. Your nine friends will contribute the remaining $6 million. All 10 of you agree that you will be the sole general manager of the business, making all business and baseball decisions, except as you delegate them to employees of the business, such as a team manager or vice president of baseball operations. Due to the way you will account for the purchase of the team and player salaries, you expect the business not to make a profit until year four. You expect that all 10 of you will remain owners of the business for at least 10 years, at which time you expect to sell the team at a profit. Which business form do you believe is best for this business?
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