Quality Environmental Inc. needs funds, and Mary Wu, the president, has asked you to consider investing in the business. Answer the following questions about the different ways in which Wu might organize the business. Explain each answer.
a. What form of organization will enable the owners of Quality Environmental to limit their risk of loss to the amount they have invested in the business?
b. What form of business organization will give Wu the most freedom to manage the business as she wishes?
c. What form of organization will give creditors the maximum protection in the event that Quality Environmental fails and cannot pay its liabilities? If you were Wu and could organize the business as you wish, what form of organization would you choose for Quality Environmental? Explain your reasoning.