You and three of your close friends have discussed plans to open a pizza restaurant with a delivery service. You intend to attract to your business young professionals who live and work near the...

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You and three of your close friends have discussed plans to open a pizza restaurant with a delivery service. You intend to attract to your business young professionals who live and work near the downtown area and who are healthy and fitness-minded. You and your co-owners agree that each will invest equally in terms of time and money. However, in addition to contributions and "sweat-equity" made by each of you, another $400,000 is essential for the restaurant to succeed.


1. What type of organization is best suited for this business activity?


2. What steps would you take to manage the restaurant during times that you and your co-owners are not present?


3. What liabilities do you and your co-owners face?


Be sure to draft your answers in paragraph form, discussing each question thoroughly. You will also need to reply substantively to a classmates' posting. Remember that the questions may be asking you for your opinion, and not necessarily a specific answer from the text. Use your new knowledge to work it out!



Answered Same DayApr 18, 2022

Answer To: You and three of your close friends have discussed plans to open a pizza restaurant with a delivery...

Parul answered on Apr 18 2022
95 Votes
Answer 1 - After evaluating the scenario, it is evident that partnership is best suited for this entrepreneurial venture. As a style of partnership, where two or more people come along to initiate their business such that all the stakeholders share the profits. Furthermore, partners may further contribute capital and time as well as insights to develop the business further. Hence, there is unlimited liability in the business settings like partnerships that essentially implies that partners aren’t only committing their contribution of capital but also working on their own assets which will be approached in case business experiences any losses.
Answer 2 -When all the stakeholders involved aren’t available, then they should appoint a strong manager who comprehends...
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