P1-3A Four independent situations follow: (a) Three physics professors have formed a business to improve the speed of information transfers over the Internet for stock exchange transactions. Each has contributed an equal amount of cash and knowledge to the venture. While their approach looks promising, they are concerned about the legal liabilities that their business might confront. (b) Joseph LeBlanc, a student looking for summer employment, opened a bait shop in a small shed on a local fishing dock. Problems: Set (c) Tom Cheng owns an oil well. He is looking for several investors who can provide capital that will be used to develop more income-producing assets like the oil well. He can guarantee a consistent and stable cash distribution back to the investors. (d) Darcy Becker, Ellen Sweet, and Meg Dwyer recently graduated with marketing degrees. Friends since childhood, they have decided to start a consulting business that focuses on marketing sporting goods over the Internet. Instructions In each case, explain what form of organization the business is likely to take: proprietorship, partnership, corporation, or income trust. Give reasons for your choice