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Elmer Johnson is a design engineer with a proven track record in the field of electronic musical instruments. He recently designed a new very large-scale integration (VLSI) chip. This chip is meant to be the heart and soul of a digital sampling keyboard to be named Echo. Johnson believes that Echo will set a new industry standard. He wishes to start a business enterprise that will manufacture and market the keyboard.
Johnson meets his lawyer, Grace, and conveys the following:
Johnson is not committed to using any particular type of business organization; he is interested in weighing the alternatives.
Which types of business organizations could accommodate the needs of the various players? What are the advantages and disadvantages of each type of business organization? Which one should Johnson choose? Why?
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