Fred, Willma, Betty, and Barney decide to open a dealership named the Stone Age to sell rockmobiles. After several months, Mr. Slate sees how well the business is doing.He tells Fred and Barney that he will pay $10,000 to be a partner.Fred and Barney agree that Mr. Slate can be a partner, and they accept his $10,000.The next year, the car dealership had a fire and as a result it had a financial loss. The partners were to pay $5,000 each to cover the dealership's losses.(1) Mr. Slate said that since he bought into the partnership, he does not have to share in the losses of the partnership, and he refused to pay $5,000 to help cover the loss.Pebbles is the office manager at Stone Age.Believing that offering coffee will increase business, she contacts Starlucks to set up a coffee shop at the dealership.Starlucks tells her that it'll cost $20,000 to set up a location at Stone Age. Starlucks also offers Pebbles 5% of the profits if Stone Age will agree to be a retail space for Starlucks. (2)Pebbles tells Starlucks to come and set it up and takes the 5%.She does not tell the partners that she is receiving 5% of the profits from Starlucks. Starlucks coffee does increase business, and Stone Age is doing quite wellmuch to the partners delight. Wilma received the bill from Stone Age for $20,000. (3) She contacted Stone Age and explained that she would not pay because Pebbles is the one who authorized it, and Pebbles is not a partner.Starlucks said that if Wilma and her Partners did not pay, then it would sue them for failure to pay. Bam Bam, Betty and Barney's son, is a professional weightlifter.Bamm Bamm sees famed agent Rocky Dangerstone at the grocery store. He asks Dangerstone to be his agent, and Drangstone agrees. To get Bam Bam more endorsements, the agent takes several businesses to fancy dinners. Bamm Bamm is excited about possibly getting and endorsement from Adidas. (4) Dangerstone sends Bamm Bamm the bill from the fancy dinners. Bamm Bamm refuses to reimburse Dangerstone because he believes that did not benefit from the dinners. (5) Dangerstone says he had actual and express authority to have the fancy dinners, and a right to be reimbursed. Bamm Bamm also hires Bryson to be his personal assistant. He needs Bryson to help him with everyday things and handle his business affairs, such as buying a car, leasing an apartment, paying his cell phone bill, buying real estate, returning phone calls, etc. (6) Since he and Bryson were childhood friends and have a prior relationship, Bryson told Bamm Bamm that they did not need a written agreement to do the tasks that Bamm Bamm wants him to do. (7) Although they are friends, Bryson explained that in order for the agency agreement between him and Bamm Bamm, then Bamm Bamm has to pay him at least 10% of the proceeds he receives from endorsements.

Unhappy with things at Stone Age and now that her boyfriend Bamm Bamm is a professional wrestler, she decides she wants to start her own rockstone jewelry collection.She is considering a sole proprietorship, a limited liability company (LLC), or a professional corporation (PC).She goes to see an attorney from some legal advice.(8) The attorney explained that a sole proprietorship is best if she has large capital needs because she does not have to incur debt and banks are more likely to give grants when their is only one person involved in the business versus multiple people.(9) The attorney advised that a LLC would be best because although she would be double taxed, her liability would be limited, which means that she could not be sued for more than $50,000.(10) When Pebbles asked about a PC, the attorney explained that the PCs do not have to pay taxes on its profits and shareholders have to pay taxes, but it is only for doctors, attorneys, accountants, and people with MBAsnone of which describe Pebbles. Although Pebbles prefers a sole proprietorship, she agrees to start a LLC for a new rockstone jewelry line.