For the four scenarios described below, indicate the business structure each one is likely to take sole trader, partnership or company (public or proprietary) and why.

1. Kerrie has commenced a hairdressing business by herself.

2. Luke, John and Chelsea have been running separate agricultural businesses but are finding the costs and hours are very high for one person and are only just keeping their individual businesses operational. They have decided to combine their businesses so they can share resources and have more time off to spend with their families.

3. Four industrial engineers with established careers wish to set up a business developing recycling techniques to reduce business waste to near zero. They want to be able to raise capital by issuing shares to the public.

4. Leanne and Chris wish to start a donut business. They are concerned about the legal issues (for example, their personal liabilities) for this business once they start trading.