You and your roommate plan to start a business after college selling pagers. You have personal assets of $20,000, and she has personal assets of $15,000. You plan to invest $12,000 in the business while she plans to invest $8,000. If the business goes bankrupt with assets of $20,000 and liabilities of $50,000, describe how much each of you stand to lose if you organize (a) as a partnership, and (b) as a corporation.
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