X, Y, and Z each invest $1,000 in a new business. X and Y do not participate in the operation of the new venture but agree to let Z make all the decisions regarding its day-to-day management. If the business experiences a $6,000 loss, how is liability shared under these facts?
a) X, Y, and Z share equally
b) Z bears the entire loss
c) X and Y share the loss
d) Loss is shared based on initial investment