a) Aimee is the owner of Moonshine, a small independent film-making business. Moonshine makes commercials and various other corporate documentaries. Aimee is regularly assisted by Paul and Noa, who act and narrate for the various film projects. Aimee pays Paul and Noa on a piece work basis for each project. Moonshine has an annual turnover of $50 000. Aimee operates Moonshine out of a spare room at her home and through a web page. Aimee is currently negotiating with Rio Verde Ltd ('Rio') to produce a documentary celebrating its centennial anniversary. The project will trace Rio's beginning as a small mining company in Central Victoria to a multinational corporation. The project is worth a lot of money to Moonshine. Aimee is confident that she can handle the project but is nevertheless concerned that if something should go wrong, she could be faced with unlimited liability. Required: What business structure is Moonshine currently operating under? Advise Aimee what the best business structure option available to her is. Give reasons for your answer and refer to relevant case law and legislation. [6 marks] b) King Wines Vineyard Pty Ltd ('KWV') owns a wine-making business. Its shareholders were Fox, Bell and Min. Fox, Bell and Min were also the directors of KWV. The directors had a disagreement and Min was voted off the board and replaced by KWV's solicitor. Fox and Bell formed a partnership to sell the grape waste from the winemaking process as specialist compost for growing asparagus, which has become very profitable. KWV was excluded from any profits of this partnership, even though the partnership operations are conducted on KWV's premises and use KWV's labour. Required: Advise Min by reference to case law and legislation. [6 marks] c) During a long weekend when KWV's winery was unattended, one of the vats that wine is stored in, developed a leak. Thousands of litres of wine leaked out and was lost. It was later discovered that Bell had neglected to renew the vat maintenance contract as well as KWV's insurance policies. As a result of these unfortunate events, KWV is unable to pay its workers or suppliers. The directors decide that the only way forward is to 'trade their way out of trouble' and sign a contract to purchase a new grape harvester. Unfortunately, this strategy does not generate income. Required: You are a junior investigator for ASIC (the corporate regulator). Your manager has asked you to briefly indicate whether any breaches of the Corporations Act 2001 have occurred at KWV. Refer also to case law if applicable