Isaac, Owen, Ryan, and Levi meet once a week to eat at new restaurants and write reviews for a local paper.One

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Isaac, Owen, Ryan, and Levi meet once a week to eat at new restaurants and write reviews for a local paper. One

day in June they began discussing the possibility of going into business together. Isaac, who is thirty-two years old, is currently working as a baker for Tasteful Bakeries, earning $45,000 a year. He loves his work, and has long dreamed of opening his own bakery. He even has a name picked out – BakeEm Fresh Daily. Unfortunately, he is a single parent raising two small children and does not feel he can afford to invest any of his approximately $4,500 in savings into such a business. His friends, however, think that they may be able to help.

Owen, a sixty-seven-year-old retired principal and he just won $200,000 in the state lottery. Also, he has $50,000 in retirement savings. Enjoying his retirement, he does not feel he would want anything to do with the day-to-day running of a business. However, assuming his money would not be at seriously risk, he would be willing to invest up to $100,000 in the business.

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Ryan, a twenty-two-year-old college student recently inherited a small two-story building, worth $76,000, in the downtown area that could easily house a bakery. He would be too busy with classes to help run the business, but he would be willing to let the others use his building to house the bakery.

Finally, Levi is twenty-six years old. He currently works odd jobs for local businesses – supplementing their sales staff and booking business. Levi feels that he is a born salesperson and manager. Of the $21,000 he has in savings, he feels he could contribute up to $6,000 toward the business. He would love to stop juggling so many different jobs to serve as the bakery salesperson and manager.

Based on all the different types of business organizations we have covered, you need to discuss each parties’ concerns and interests to determine which type of business organization each of these people (as individuals) would prefer.

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