Susan Duncan and Mary Hines are thinking about opening a bakery. Susan has extensive marketing experience but does not know that much about baking. However, Mary is an excellent baker. Both will work in the business, but Susan will provide most of the funds necessary to start the business. At this time, they cannot decide whether to operate the business as a partnership, corporation or LLC.

Prepare a written memo to Susan and Mary describing the advantages and disadvantages of each organizational form. Also, from the limited information provided, recommend the organizational form you think they should use.