Three friends have just graduated with Bachelor of Management degrees from Athabasca University. One wants to start a restaurant but is worried about the potential liability involved with serving food to other people. The second wants to work as a subcontractor in a building trade and expects to have her potential liability covered by the contractor's insurance plan and through the Workers' Compensation Board. The third wants to team up with a couple of other graduates to create a financial services firm to provide insurance, financial planning services, and bookkeeping assistance. She wants to make sure that the partners have a strong incentive to work together to make good decisions and to grow the business for the benefit of all the service providers.

What form of business organization would you suggest for each friend, and why?