Three former college roommates want to start a warehousing and distribution business in a major city. Their first hurdle is deciding how to establish the business: as a partnership, C corporation, or an S corporation.

Which of the following, if true about the owners' plans for the new business, would weaken the case for operating the business as a partnership?

Each owner brings unique skills to the business and wants to actively participate in all phases of the business operation.

They would like to obtain as many investors as possible in the early stages of the business.

The owners will need to take out substantial loans to get the business going, and they are uneasy about assuming personal responsibility for the debts and obligations of the business.

They have carefully considered the tax implications of business ownership and do not want to pay corporate income taxes.