Dagwood, Garfield and Snoopy decided to open a scotch tape boutique in a local shopping centre, No-Oaks Mall.Dagwood has a great deal of expertise in the operation of a scotch tape boutique, but only $25,000.00 in cash, which belongs to him and his wife, Blondie, all of which

he is prepared to invest in the boutique.Blondie wants some ownership interest in the boutique as well as Dagwood.Garfield has numerous assets and is prepared to invest $100,000.00, but will spend most of his time on vacation.Snoopy has $1,000.00 to invest and has no other assets but will work full time in the boutique and requires a salary.Dagwood is mindful that the business is risky and has the additional problem that Garfield and Snoopy fight like cats and dogs and that this may cause instability.The hope of the parties is that the new business, to be called AStuck On You@, will be successful and can be sold for a profit in two years.

(7 marks)Examine which form of business organization would be most beneficial for each of the parties.Consider the relevant factors. What format should they jointly decide upon?

(7 marks)Review the numerous terms and conditions of the Lease that Dagwood, Garfield and Snoopy must negotiate, making particular note of what terms will be of greatest concern to them. (each relevant point is worth one-half mark).