Problem: Develop a matrix that compares and contrasts the characteristics of the various types of business entities. In each of the squares of your matrix, describe the characteristics that apply to the listed issue and the listed business entity. After completing the matrix, prepare a 350-700 word response to the following scenario:
You are starting a business that sells pet treadmills. Initial market research shows a potential for high demand in affluent areas and cities with severe weather. You also foresee a lucrative international market and franchise opportunities. You have two options for capital: use your inheritance, which includes a multimillion-dollar home, or allow your two rich friends to join the business. You plan to use traditional marketing and sales methods as well as e-commerce. Before you can go forward, you must resolve the following:
a. What type of business entity should you form? Explain your reasoning.
b. What specific liabilities, if any, will you be exposed to?
c. What are the advantages and disadvantages of hiring employees or using independent contractors for your sales force?