Question: Dan, Fran and Stan want to establish a bike sales and rental shop. Dan and Fran will be actively involved in managing the business operations, and Stan is investing most of the money. The 3 want to use a form of business organization that will give limited liability to each of them.
Using THREE of the seven factors as discussed in class (liability, taxation, financing, management, liquidity, formalities, and life of business) discuss what would be the best type of business organization to limit their liability, and why?