1.11. Alf is a recently retrenched corporate manager who decides to form a lawnmowing business in his local area to help him keep fit and earn a little income (no more than $30 000 per year). He already owns a large four-wheel drive car, and plans to buy a large trailer, two lawnmowers and whipper-snippers. (a) Alf approaches you for advice about an appropriate legal structure for his new business. Advise Alf, specifying explicitly any assumptions you consider necessary. (b) Alf discusses his business idea with Ben and Carrie, who were also recently retrenched, and they agree to enter into business together. Each has distinct skills and experience to bring to the start-up, and they are based in different geographical regions. What advice would you provide? 1.15. 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. (a) 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? (b) Why would you recommend this structure? Provide details. 1.17. Leroy is considering starting a catering business. Leroy has three children (aged three, 16 and 21) and is married to Melanie. The proposed business will cater to high-end corporate clients and wealthy individuals. In order to have the ability to cater events for these clients, Leroy needs approximately $4 million of capital. Leroy intends to invest $2 million into the enterprise from his own funds and get the balance from third-party sources. Leroy wants to have his wife and children involved in the business as well. (a) Advise Leroy. (b) How would your advice change if Leroy said his friend Linus owned a commercial kitchen and he wanted to invest that asset in the business for a 25 per cent interest in the business