Congratulations! You have secured an internship with a large firm of corporate advisers. Sally, a partner in the firm asks you to attend an 8am meeting on Monday with herself and Damian Fairchild who was a longstanding client of the firm. You will be required to take notes and prepare answers to Damian's queries. Damian has been married to Angelina Li for eight years and have two children named Lily and Lila Fairchild. Damian is a smart businessman who has been running a car dealership in Cranbourne, Victoria named 'Racing your way' (RYW). RYW has both local and overseas customers. The turnover of the business has grown from $285,000 to $3million per annum. The business operates from rented premises, but Damian would prefer to buy a building. Currently, ten staff work in the premises and Damian plans to expand the business and further. He also wants to start a car parts business called 'Racing parts' (RP). Angelina tells him that her father Robert Li has agreed to provide the funds necessary for the expansion. Damian's mother 'Mary Fairchild' is a retired accountant and Damian regularly asks for her advice. When asked about the expansion and Robert's investment she tells Damian that he should run his business as a company. Damian is unsure about this. He makes an appointment to see Sally. Damian comes to the appointment with his father in law Robert Li. Robert tells Sally and you that he prefers a business structure with very little formalities and contracts. He wants to adopt the new business structure as soon as possible. He wants a share of profits proportionate to his investment while being able to divide the liabilities with Damian. However, Damian does not share the same view. He wants to formalise the business and wants a business structure with stronger regulatory insight to ensure business is managed well. He also confides in you that he is worried that Robert might make undue demands and abuse his position as investor to influence the decisions made by the employees. Further, he is worried about the risks of the new business, RP and wants to make sure that his house worth $2.2 million in Glen Waverley and his two motor vehicles worth $ 155000, BMW X5 worth $135,000 and a Toyota Yaris worth $20,000) are protected from the liabilities of the business. At the end of the meeting Damian asks what options he has as to the structure of his business and wants you to advise him. Required: After the meeting, Sally asks you to prepare a report to be sent to Damian. In your report, compare different business structures and choose the best suited business structure. You need to clearly explain the reasons for the selected business structure. If you choose a company as a suitable structure, explain which type of company you would recommend.