assume that you work as a manager in a relatively small, privately owned U.S. business. The company president (who is also the owner) inherited the company from his mother and has never started a business. He is considering creating a spin-off business (possibly with one or two associates) but is unsure about what form of business entity would be best to use for the new business. It is expected that contracts will play a major role in the success of the business, as it utilizes numerous suppliers and distributors. The president knows you took a university-level business law class and has asked you to briefing analyze the four most common business entities in the context of contracts to help him decide which type of organization to choose for the new operation.

Research each of the following forms of business entities:

• Sole proprietorship.
• General partnership.
• Corporation.
• Limited liability company (LLC).