Gurlivers Travels

Four friends are talking about opening a Travel Agency together called Gurlivers Travels. Tami had the idea for it and has a background in general marketing and promotion. Carol has business experience comes with $50,000 of cash to help get the business started. Renee has traveled extensively in the USA and on various cruises in the Caribean Sea and knows great tour guides. Deb is the fourth friend and has experience in the Resort and tourism areas.

When they were talking about the business legal structure, Tami said she thought it should be set up as a sole proprietorship with her being the owner since it was her idea. Carol agreed with the sole proprietorship, but said that she should be the owner since she was investing the capital in the business. Renee suggested that a partnership be the type of ownership with Her and Deb having more ownership since they have the experience in the industry. Carol didnt like that idea and restated that a sole proprietorship was a simple way to start. Deb recommended establish GurliversTravels as a Corporation due to the risks. Tami said that was too complicated and who would own the stock?

Your Task:

They know you are a business student and ask for your opinion on the dilemma. Suggest a solution to their problem regarding the type of organizational structure and ownership distribution for each of the four. Support your recommendation with facts about the structure chosen.