Chip and Dale started Pom Wonderful in their basement. Pom Wonderful is an 80% pomegranate based drink the two created to help with weight loss. When they first started, they both contributed equal amounts of capital but did not sign a formal agreement or register with their state. It was not until Chip and Dale began receiving requests from all over the world for Pom Wonderful that they began thinking about becoming a global company and selling Pom Wonderful stocks on the New York Stock Exchange.

Recently, Chip and Dale discovered their top competitor engages in false advertising by selling a pomegranate-blueberry juice blend that is supposed to be 45% pomegranate juice and 45% blueberry juice, but only contains 2% of each type of juice. In addition, Chip and Dale discovered that the competitor was secretly buying up smaller competitors on the market and had gained control of 65 percent of the pomegranate weight loss drink market.

1. What type of form of business ownership did Chip and Dale initially form? Explain why you selected this form of business ownership.

2. If Chip and Dale want to sell Pom Wonderful stock on the New York Stock Exchange, what type of form of business ownership must they form? Explain your decision.

3. Explain the role the Federal Trade Commission would play in investigating Pom Wonderful's competitor's deceptive advertising practices.

4. Explain the role the Federal Trade Commission and Department of Justice would play in investigating the competitor taking 65 percent control over the industry by buying up smaller competitors.