Valentino and Eva are siblings who have inherited a large sum of money. They hope to use their inheritance to start a restaurant together. Both Valentino and Eva have worked in restaurants their entire lives, and both have strong business backgrounds, but they are concerned about the strong competition in their community. Use what you have learned about business organizations to advise Valentino and Eva. Which type of business organization should they consider when setting up their new restaurant? Include at least two reasons for your advice.

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Jefferson Padilla

25 April, 02:58

Valentino and Eva are siblings who have inherited a large sum of money. They hope to use their inheritance to start a restaurant together. Both Valentino and Eva have worked in restaurants their entire lives, and both have strong business backgrounds, but they are concerned about the strong competition in their community. Use what you have learned about business organizations to advise Valentino and Eva. Which type of business organization should they consider when setting up their new restaurant? Include at least two reasons for your advice.

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Rolando Morrison · Answer 1

In my opinion, limited partnership would be the best type of organization for Valentino and Eva.

- Limited Partnership will establish Valentino and Eva as partners with equal influences. Since they both have strong business background, i believe this would be really important for them.

- Since there are many competitors, the restaurant buisness might not be failed and forced to close. In limited partnership, Valentino and Eva's assets would be protected from the liability that derives from the liquidation process.