Identify whether each of the business firms described below is a sole proprietorship, a partnership, or a cor poration, and explain why:

a. Terrence and Lars have owned a business together for three months. Terrence contributed 60 percent of the capital needed to start the business, and Lars contributed the other 40 percent. Each owner is responsible for a proportionate share of the profits and losses of the business, and each owner partici pates in managing the business.

b. Four wealthy individuals create a business for the purpose of funding the construction of a new com merce center to revitalize the downtown business district in their city. Each individual contributes 25 percent of the funds necessary for the project, and each individual is liable for only 25 percent of the firm’s losses. They all sign an agreement.

c. Ana Ing, David Goldberg, and Mike Werner are all certified public accountants. They decide to do business together. By the end of its first year, the firm has become very profitable. As a result, the firm has to pay a substantial amount in income taxes on its profits.

d. Dr. Menendez practices medicine on his own; he has not incorporated his business.

e. The Pear Co. is a for-profit business that has a charter issued by the state. The charter provides for the limited liability of the company’s owners.