Your best friend at Macomb Community College wants to start a new business. Only one thing is missing. As a recent college graduate, your best friend lacks the necessary finances to begin the new business.

Although your best friend has several concerns, the two primary concerns are (1) financing, and (2) the potential liability involved with starting a new business.

Your best friend has thought about the following choice as the organizing structure of the new venture: a sole proprietorship, a partnership, or a corporation.

Which type of business structure would best serve the two primary concerns identified? Which type of business structure would be the worst?