Pat and Jim are founding an entrepreneurial venture. They want to leverage their complementary skills and raise as much capital as possible. Which business form would you recommend for their venture?

Question

Quizplus · Accepted Answer

A partnership would be the best choice for Pat and Jim's venture as it allows them to combine their complementary skills and share in the profits and losses of the business. This also allows them to raise more capital as partners can contribute financial resources to the business. Proprietorship and advisory board are not appropriate business forms for this scenario, as they do not allow for the sharing of profits and losses or the combination of complementary skills. While a corporation can also raise capital, it may not be the best choice as it involves more complex legal and financial requirements.

Pat and Jim Are Founding an Entrepreneurial Venture