P1-1A. Forms of Business Organization Presented below are four independent situations:

a. Kali Kane, a senior in college looking for summer employment, decided to start a dog-walking

business. Each morning and evening she picks up a group of dogs and walks them around the city park.

b. Brothers Joe and Jay Simmons each owned a separate electronics repair shop. They decided

to combine their talents and resources in order to expand the amount of business they could undertake.

c. Three chemists at a large engineering company decided to start their own business based on an

experimental chemical process they had developed outside the company. The process had the

potential to be very successful; however, it was quite dangerous and could result in large legal problems.

d. Jack Prince ran a small, but successful holistic healing spa. The spa has gained a strong reputation beyond the community where it is located. Jack decided to open a chain of similar spas across the state to capitalize on his reputation. This will require a substantial investment in supplies and employee training. In addition, since Jack will not be able to closely supervise each location, he is worried about potential liability.

Required

Explain the form of organization that would be best in each situationsole proprietorship, partnership, or corporation. Explain what factors you considered important in each situation.