Case Study Three: Jeb and Josh are lifelong friends. Jeb is a wealthy wind-power tycoon, and Josh is an active outdoor enthusiast. They have decided to open a
sporting goods store, Arcadia Sports, using Jebs considerable financial resources and Joshs extensive knowledge of all things outdoors. In addition to selling
sporting goods, the store will provide whitewater rafting, rock-climbing, and camping excursions. Jeb will not participate in the day-to-day operations of the
store or in the excursions. Both Jeb and Josh have agreed to split the profits down the middle. On the first whitewater rafting excursion, a customer named Jane
falls off the raft and suffers a severe concussion and permanent damage to her spine. Meanwhile, Jebs wind farms are shut down by government regulators,
and he goes bankrupt, leaving extensive personal creditors looking to collect.
Specifically, the following critical element must be addressed:
Identify the main types of business entities and discuss the advantages and disadvantages of each.
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