Two friends, Jim and Pam, form a consulting firm. When deciding on what business entity they should use, they are especially concerned about losing personal assets if they are sued for their professional services. They are also concerned about income and taxes as they are just starting their careers and are on a tight budget.

Topic Questions:

1. What business entity should they use? Why?
2. What type of agency principles are involved in the type of business entity you chose in the previous question?

Reflection Questions:

1. Is there anything you learned that will cause you to change your behavior from what it was before working on this module? What is it? Please discuss.
2. Which topics were confusing, complicated or contradictory? Why?