A music promoter has had an offer to bring a famous musical group from England to Australia, as part of its world tour to promote its new album. The music promoter has done smaller tours previously, but nothing on the scale proposed by the manager of this famous group, the tour will cost several million dollars, but is likely to have revenue which will result in substantial profits for those involved.

The promoter has some contacts at a national radio station which can promote the tour, and there is at least one financier who is interested in financing the tour in return of course for a share of the revenue from the tour.

The promoter is calling for a meeting of the different interested parties, he is not sure what business organization would be best to manage and conduct the proposed tour, particularly as it is going to involve various diverse entities, each with their own separate business interests.

Explain:

(1) The options open to the different parties in what business structure they might use to promote the tour (8 marks);

(2) The dangers of each type of business structure  

(3) Whether there is any means of limiting risks by each party