Albert, Paul, and Mary operate a pottery studio in Bartown called "Puff's Pottery Shoppe & Studio" (Puff's). Albert contributed $50,000.00 while Mary and Paul contributed $5,000.00 each and worked actively with promoting and operating the business five years ago and despite a rough start, Puff's became wildly popular and profitable two years ago. Artists from Trinidad and Jamaica and places between regularly come to Puff's to practice their art amidst the stunning beauty of the central coast. Recently, Albert has upon difficult times in his personal financial life. For the past year, he has been on the verge of bankruptcy. In an act of desperation, Albert caused Puff's to obtain business loans in the amount of $420,000 through a contractual relationship with Krystle Twinkles Art Gallery and secretly diverted the money to his personal account. Paul and Mary regularly review the books and records of the business, but Albert successfully hid the existence of the loans by not recording them in the business ledger. Meanwhile, Mary decided that she wanted more time to focus on her family. After discussing it at great length with a close friend and fellow potter, Mary decided to transfer her management and financial interests in the partnership to Yolanda. Yolanda took to her new roles and responsibilities with great enthusiasm. While reviewing Puffs books and records last week, Yolanda discovered a discrepancy and ultimately uncovered Albert's secret loans. By Yolanda's estimation, Puff's assets arc worth $90,000, Paul has assets of $25,000.00 and Mary has personal assets valued at $15, 000.00. 1. Based on the scenario briefly discuss whether: . The type of business entity which exists. . the transfer of Mary's interests to Yolanda is valid in whole or in part. (2 marks) . Puffs is liable for the loans diverted by Albert in whole or in part. (10 marks) . Albert, Paul, or Mary is liable for the loans diverted by Albert in whole or part. (5marks) (20 marks) 2. Looking at the facts of the scenario, suggest to Mary the most suitable type of entity that should have been chosen. (15 marks)