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Pros and cons of the different forms of business entities

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Reference no: EM133199921

Tommy and his sister Teresa are fans of natural ice cream. To introduce others to their passion, they want to open an ice cream parlor to sell their creations. They come to you for advice as to what type of form would be best for their budding company. One of their potential investors is a former classmate (a Chinese citizen) of Tommy from his MBA days at Wharton. In addition, one of Teresa's former classmates from Harvard Law School is the general counsel of a major food products company. The company may have an interest in investing in the business.

Please discuss the pros and cons of the different forms of business entities they might establish; then make your recommendation as to which would be the best type for them, stating why you came to that conclusion.

Note that for this assignment, no citations to specific authority are required. However, you should, of course, discuss the applicable rules for the various business types when completing this assignment.

Reference no: EM133199921

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