Thelma and Louise Are Roommates in College

Thelma and Louise are roommates in college.Thelma loves to bake and makes incredibly tasty chocolate chip cookies.Louise suggests that they sell the cookies around campus and split the profits.They orally agree that Louise will advertise the cookies,provide decorative bags to put the cookies in,and be responsible for deliveries around campus while Thelma will obtain the ingredients and do all the baking.They intend the whole endeavor to be low-key and informal.Have Thelma and Louise created a business entity,and why is it important for them to fully understand their relationship?