1. Jenna, Koda and Lula decide to start a business baking expensive wedding cakes. Jenna and Koda will each invest $10,000 in the business. While they don't want to participate in the day-to-day running of the business they still want to have an active role in management. Lula has no money to invest, but she has years of experience baking cakes.

Lula's son, Asa, also wants to invest $50,000 in the business. He wants to have a steady income from his investment. While he does not want to be involved in the management of the company, he still wants to have some ability to direct how his $50,000 investment is spent.

What legal structure would you advise for their project: a partnership, an incorporated association, a company (if a company, provide details on the type of company) or some other structure? Why would you recommend this structure - provide details?

2. John is a foreign exchange trader working for a large bank. John and twenty-five of his fellow workmates decide to leave the bank and start their own foreign exchange trading firm. They decide to operate as a partnership. Do you think this is a good structure for the business?

3. What is a 'company'? What is a 'corporation'? What is the difference between a 'company' and a 'corporation'?