Choose the term that best applies to the scenario.

QUESTION 2 Choose the term that best applies to the scenario Meghan started a small business breeding horses on her farm. She worked on her A. shareholders' agreement own. The business was called HRH Horses. This business is an example of a B. agency agreement C. partnership Meghan's sister-in-law, Kate, wanted to join her in the business and they decided to run HRH Horses together. They did not have a formal arrangement, but each D. private corporation contributed some money so they could build stables to expand the business. E. sole proprietorship Meghan contributed $500,000 and Kate contributed $700,000 What kind of F. limited partnership business is this? G. limited liability corporation There was still not enough money to raise the thoroughbreed horses they were H. public corporation hoping to sell. So they brought in another family member, Elizabeth, who contributed $1,000,000. Elizabeth wanted only to invest without having any involvement with the day-to-day running of the business. Meghan and Kate would continue to manage HRH horses together. With this arrangment, they could establish a HRH horses continued to grow and wanted to raise money by bringing in 2-3 additional investors. They decided to incorporate. To best protect their interests Meghan, Kate, Elizabeth and any new investors should enter into a HRH Horses has developed an international reputation for breeding top-quality thoroughbred horses. It's plans for growth and its need for capital have sky- rocketed. More importantly there is a feeling that many people in the country would really like to share in the ownership of the company. So HRH Horses can decide to issues shares widely and become a