(a) Ms Stark has invested 60,000 in Tiny Pots, a business selling handmade pottery. The business has recently shut down and is unable to fulfil payment obligations worth 90,000. Tiny Pots has no cash in its business bank account, it is owed no money by customers, and has no inventory to sell. In short, the business has no assets it can use to satisfy its obligations.

Determine Ms Starks potential loss of investment and the amount of payment (if any) that she will personally be obliged to make in each of the following situations:

• i.Tiny Pots is a sole proprietorship owned by Ms Stark (4 marks)
• ii.Tiny Pots is a general partnership owned 50:50 by Ms Stark and Ms Connelly (4 marks)
• iii.Tiny Pots is a private limited company (Ltd) owned 70:30 by Ms Stark and her brothers (4 marks).

Explain your reasoning for each of your answers.