Aaron Brandt was the Executive Chef in a restaurant in a five-star hotel in downtown Montreal. His passion for vegan food made his restaurant extremely popular. During January 2020, a Venture Capitalist, Jan Voerts visited his restaurant for dinner. Amazed by the food preparation and presentation he sought a meeting with Aaron the following week. During the discussion he offered Aaron capital of $ 1.5 million to start his own restaurant in downtown Montreal. Aaron was pleasantly surprised by the offer and sought one weeks’ time to think this over.
His first thought was about the name of the restaurant. Realizing that good vegan food was a rarity, he decided that name of the restaurant should foster a community feeling amongst vegans. With that in mind, he decided to name his restaurant ‘Where Vegans Unite’.
Unable to contain his excitement he spoke to his neighbour, Sam Nyerka about the offer. Sam was a CFO in large corporation. He inquired with Aaron about the proposed structure of the new business. Aaron had no idea about business structures and sought to know more. Sam informed him that a business could be structured as a sole proprietor, partnership, or a corporation. All the three forms had their own merits and demerits.
Aaron needed help and decided to reach out to Conestoga Consulting. You are the Consultant assigned to Aaron and your first meeting with him will take place in a weeks’ time. Aaron would like a memo addressed to him explaining the pros and cons of all the three forms of business and a recommendation as to which structure would be most appropriate.
In preparation for his meeting prepare the memo as per requirements from Aaron.