Presented below are five independent situations.

(a) Joyce Packee, a college student looking for summer employment, opened a vegetable stand along a busy local highway. Each morning she buys produce from local farmers, then sells it in the afternoon as people return home from work.

(b) Alex Rice and Peter Gould each owned separate swing-set manufacturing businesses.

They have decided to combine their businesses and try to expand their reach beyond their local market. They expect that within the coming year they will need significant funds to expand their operations.

(c) Three chemistry professors at FIU have formed a business to employ bacteria to clean up toxic waste sites. Each has contributed an equal amount of cash and knowledge to the venture. The use of bacteria in this situation is experimental, and legal obligations could result.

(d) Emma Peale has run a successful, but small cooperative health food store for over 20 years. The increased sales of her store have made her believe that the time is right to open a national chain of health food stores across the country. Of course, this will require a substantial investment in stores, inventory, and employees in each store. Emma has no savings or personal assets. She wants to maintain control over the business.

(e) Tammy Laven and Ted Peterman recently graduated with masters degrees in economics.

They have decided to start a consulting business focused on teaching the basics of international economics to small business owners interested in international trade.

Instructions In each case explain what form of organization the business is likely to take—sole proprietorship, partnership, or corporation. Give reasons for your choice.