You and nine of your wealthy friends decide to purchase a local minor league

baseball team. The purchase price is $15 million, 60 percent of which you contribute to

the business as capital. Your nine friends will contribute the remaining $6 million. All

10 of you agree that you will be the sole general manager of the business, making all

business and baseball decisions, except as you delegate them to employees of the

business, such as a team manager or vice president of baseball operations. Due to the

way you will account for the purchase of the team and player salaries, you expect the

business not to make a profit until the fourth year. You expect that all 10 of you will

remain owners of the business for at least 10 years, at which time you expect to sell the

team at a profit.