Scenario 1.

A, B, and C want to go into the automobile business together. They have a detailed business plan for their business, with A in charge of manufacturing using B's cutting-edge technology patents, and C in charge of marketing. They plan to use B's patents to develop a working prototype, and then to solicit investors to finance the production and sale of their automobiles nationwide. What business entity should they use to organize their business, and why?

Scenario 2.

A, B, and C want to purchase a local chain of funeral homes. Their business plan is based on the goodwill that A has in the community as a beloved former high school and college athlete, the significant capital investments planned by B and C, and the extensive experience that all three of them have working in the business. Also, C wants to make certain that C's daughter D can be brought into the business in an ownership capacity after she finishes mortuary school. What business entity should they use to organize their business, and why?