6. Harry has just started a business with $150,000 of assets, funded by $70,000 of personal funds and $80,000 debt. Unfortunately, on the opening day, before Harry could take out an insurance policyand before he could make any sales, a customer, Julie, injures herself on business premises and successfully sues for medical bills of $200,000. All business assets can be sold at cost to cover part of the medical expenses. Assume Harry has $500,000 of personal assets, including his $70,000 investment in the business. Which of the following statements is NOT correct?

a.

If the business is set up as a sole trader, Julie will receive $200,000.

b.

If Harry is a sole trader, his return on equity will be -429%.

c.

If Harry set this business up as a private company as the sole shareholder, his return on equity will be -100%.

d.

If Harry has set the business up as a partnership with Sandra, both partners will be personally liable for the costs of winding up the business and the law suit.

e.

If the business is set up as a company, the customer, Julie, will receive $70,000 towards her medical bill.