Starting a business is challenging. Finding the right business form is one of the tasks any entrepreneur must tackle with thought and care. This is true across industries, including the restaurant business. Creating a new dining and food concept is fun, but also carries with it legal concerns on top of the woes any business leader finds in launching a new venture.

Sometimes eating those foods from childhood provides that combination of culinary delight and a positive trip down memory lane. After many years working in the food, beverage and hospitality industry, Sam Shepard (no relation to the famous actor/writer) plans to open her own restaurant, Fun! Sam intends to be a hands-on owner at Fun! that will begin as a delivery service and food truck serving yummy foods from her family's recipes that she loved as a child. Sam hopes the future includes traditional restaurant locations, and possibly catering options.

Sam has saved for many years and does not expect to make a large profit for at least the first year and plans to focus on putting almost all profits back into the business for the first two years, but she hopes to expand eventually and possibly take on financial and/or business partners. Sam is concerned about tort liability; whether that comes from premises liability issues, food quality issues or the multitude of issues concerning the current global pandemic. Sam is also concerned about contractual liability for obligations she will incur with the truck purchase, the acquisition of commercial kitchen equipment, and more.

Questions:

1.Sam has asked you which form of business organization do you think would be most appropriate and WHY?

2.What are the chief characteristics of this form of business organization, how do you form this organization and how do you maintain this

organization?

3.What are the advantages and disadvantages of this form of business organization as compared to other forms of business organizations with respect to Sam's specific concerns?