Problem: You and two of your college roommates have discussed plans to open a restaurant. You intend to attract college-age students who are health-and fitness-minded to your restaurant. You and your coowners agree that each will invest equally in terms of time and money. However, in addition to contributions made by each of you, another $700,000 is essential for the restaurant to succeed.
What type of organization is best suited for this business activity? Who will manage the restaurant during times that you and your coowners are not present? What liabilities do you and your coowners face?