Objective : Explain and differentiate between business organizations.
Taylor Signs, Inc., needs funds, and Taylor Stamp, the president, has asked you to consider investing in the business. Answer the following questions about the different ways that Stamp might organize the business. Explain each answer.
a. What forms of organization will enable the owners of Taylor Signs to limit their risk of loss to the amounts they have invested in the business?
b. What form of business organization will give Stamp the most freedom to manage the business as she wishes?
c. What form of organization will give creditors the maximum protection in the event that Taylor Signs, Inc., fails and cannot pay its debts?