1. Which business structure do you recommend as the most suitable business structure in the following two situations? Give reasons in support of your answer. (10 marks)

a) Jay is engaged in a business with two others. Annual turnover of the business the past two financial years has been over $4m. Jay finds their business is paying too much tax. Jay needs more capital to expand their business but is afraid bank may not lend them expected amount due to stricter lending regulation since the Banking Royal Commission Report published in February 2019.

b) Jenny has recently retired after working as a lawyer for 30 years. However, to keep herself active and earn some money for holidays she is planning to sell cup-cakes at the Farmers Market held in her locality every Saturday. Jenny inherited a unique recipe for cakes from her grandmother and believes her cakes will hit the market. Jenny is looking forward to a relatively quiet lifestyle aims to minimise paperwork or legal complexities.