Alice has been carrying on a sporting goods business in Ottawa as a sole proprietorship under the name A-Sport since 1999. By the spring of 2016, she was unable to cover the costs associated with the business. By September 2016, she had sold many of her personal assets, including her house, to pay the expenses of the business. Alice is very worried that she will lose the business and not be able to support her daughter. She is a single mother and has no other source of income. In September 2016, Alice met Mario at a trade show. Mario carries on a successful business as a sole proprietor. The key to his success has been a combination of innovative inventory management techniques and the use of aggressive television advertising. Mario is married with three children. Alice and Mario decide to carry on the A-Sport business in Ottawa together. Mario has $100 000 available to invest in Alice's business and has substantial other assets, including three store premises and a warehouse in Toronto. They agree on the following.Alice will contribute all of her interest in the A-Sport business. Mario will contribute $100 000 in cash.Alice will manage the A-Sport stores on a day-to-day basis, while Mario will be responsible for marketing and inventory management. Mario will continue to spend most of his time in Toronto looking after his business there.All major decisions for the business will require the agreement of both Mario and Alice. What issues should Alice and Mario address before going into business as a partnership?

Based on the facts in Problem 10, how would these issues be addressed differently if Alice and Mario were to set up a corporation to accomplish their business objectives?