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andrew11 [14]
3 years ago
14

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.
History
2 answers:
Naily [24]3 years ago
8 0
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.

NemiM [27]3 years ago
4 0

General Partnership would be a good option for business organization for Valentino and Eva's start up restaurant. This is a good option for both siblings since:

  • Valentino and Eva would shares the profits, losses, and management of the business equally, creating a healthy business environment.
  • Presumably, Valentino and Eva have equals sum of money from their  inheritance. Having equal investments it is the most obvious option.
  • This type of agreement is not recommended for married couples because of the personal life involvement, but for siblings this would not be an issue.
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