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Kelly and Karla were roommates at Lynn University and gradua
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Kelly and Karla were roommates at Lynn University and graduated last May. While on a post-graduation celebration trip to Costa Rica, the two women began exploring the idea of opening a restaurant on South Beach in Miami, Florida. Neither has any previous experience in starting or operating a restaurant, but both have extensive connections in the Miami-Dade area because of the many friends they made while attending Lynn. They intend to attract health-minded, college-age students to their new restaurant, The SoBe Health Hut. Kelly and Karla agree that each will invest equally in terms of time and money. However, in addition to these equal contributions, another $100,000 is essential for the restaurant to succeed. 1) Explain the key elements of – and the differences between — a sole proprietorship, a general partnership, a limited liability partnership, and a corporation. (65%) 2) What type of the above four business entities is best suited for The SoBe Health Hut and why? In your answer, explain who will manage the store and what personal liabilities will Kelly and Karla face and why? (35%) You shall be graded on your complete and proper explanations, research and language usage, all as noted below. The report must be no more than 1,000 words and is to be submitted in typed, double-spaced form.
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