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Scenario: Adam and Laura wish to open a pet grooming shop called Dazzling Doggies Day Spa. Laura’s mother Beth would like to contribute the startup costs in exchange for a share of profits, but she doesn’t want to participate in the daily operations of the business. She also doesn’t want to have any personal liability in the business.
Develop a 350- to 700-word summary with the following information:
- Which business organizational form would be best given the above circumstances, and why?
- Unbeknownst to Laura and Beth, Adam begins to use Dazzling Doggies Day Spa’s checking account to pay all his personal bills. Are his actions ethical? Why or why not?