A. Identify the main types of business entities and discuss the advantages and disadvantages of each.

B. Recommend a specific business entity for Arcadia Sports and include your reasoning.

C. Based on the characteristics of each type of business entity, determine the type under which Jeb and Josh would be personally liable to Jane for damages.

D. Based on each type of business entity, analyze the ability of Jeb's personal creditors to seize the assets and/or profits of Arcadia Sports.

See explanation section

Explanation:

Requirement A

1. Sole proprietorship: Advantage: Can make quick decision.

Disadvantage: Having unlimited liabilities.

2. Partnership: Advantage: Access to knowledge, skill, and experience.

Disadvantage: Having unlimited liabilities.

3. Corporation: Advantage: Limited Liabilities and a massive amount of money.

Disadvantage: Double taxation.

Requirement B

From the case, we can recommend the limited liability partnership for Arcadia Sports. As Jeb has winding power and contributes more money, he does not need to involve in the daily operations. Josh will be the operator of the business. A significant characteristic of limited liabilities of partnership is that no partner is responsible for the company's obligations.

Requirement C

Based on the characteristics of each type of business entity, it is a partnership business because Jeb and Josh would be personally liable to Jane for damages. According to the partnership business, it has unlimited liabilities, and partners are responsible for any customers' damages. Therefore Jane might sue the partners.

Requirement D

Based on each type of business entity, I could say that the ability of Jeb's creditors to seize the assets and profits of Arcadia Sports might be a general partnership. Jane, one of Jeb's creditors, can recover the damages against both the partners as every partner has unlimited liabilities for each partner's obligations.