Amar, Akbar, Anthony and Amarpreet were four school time friends. After passing from school, the four met with each other and were discussing about their future plans. All four were sure that they would take up to doing business after finishing their graduation.

Amar was very ambitious and always thought of growing fast and managing a large business empire. He was contemplating the setting up of a retail chain of beauty parlors across the country (replicating the McDonald model). Akbar never believed in such large dreams and had always believed in being self-reliant. Akbar was planning to start a sponge iron unit. Anthony always believed in being a team member. He was planning to start an event management firm. Amarpreet being a doctor by profession believed in serving the people and hence, planned to run his own hospital with help of his professional group of friends.

Case Questions

(a) Suggest the type of business entity that would fit the profile of each individual. Give your reasons.

(b) In the above case, should the type of business being taken up, influence the type of business entity?  Discuss.

(c) What other factors do you think are essential while deciding on the type of business entity?