Question $16$

A local inventor developed a diet pill that he believes will solve the obesity problem in the United States. The inventor intends to create a new company, $50\%$ owned by herself and $50\%$ owned by a major drug company. Although she believes the pills are safe, she's concerned about liability if someone becomes sick or dies. The best form of business organization for the new company is

sole proprietorship with the inventor as the owner and the drug company as creditor.

general partnership with the inventor and the drug company as equal partners.

S$-$type corporation with the inventor and the drug company owning equal shares.

limited liability company with the inventor and the drug company owning equal shares.