Activity A Scenario $($Striking Out On Your Own$)$

Jorge decided to leave his job as an insurance agent and start his own, independently run insurance brokerage business. Although

Jorge had the knowledge, experience, and education needed to start an insurance brokerage, he needed start$-$up money. Jorge's

brother offered some "seed money" to help launch the venture. Jorge promised to pay him back but wasn't sure if that was enough.

He didn't want to potentially damage his relationship with his brother if he had problems meeting his brother's expectations for

repayment. Jorge wondered if drawing up a legal document might be appropriate. Then Jorge thought that maybe involving his

brother formally in the business might be a good alternative.

Activity A Questions $($Type in answers in the space provided below the assignment.$)$

What would be the best form of business for this situation and why? Explain reasoning for business form.

Should Jorge form a business partnership? Why or why not?

What role might Jorge's brother take in the business? Why was this role selected?

How would Jorge assure that his brother's investment would be paid back if his brother was part of the business? Explain why

paying his brother back in a timely manner is important for the business and their personal relationship.

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