Franklin is an ambitious young person whose dream is to become one of the most successful entrepreneurs of his generation. He is contemplating setting up a company, together with his cousin, Ama, who shares a similar vision. Even though he is desirous of setting up a company, he also wishes to protect himself and his cousin from any liabilities which the company may incur. They also intend to limit the membership of the said company amongst a few friends and relatives since they do not want any 'strangers' to come on board and ruin their vision.

Franklin and Ama have been introduced to you as a Company and Partnership law student, please advise them as to the type of business entity which will best suit their vision and provide justification for the said type of business.

Also advise Franklin and Ama as to the measures the company can adopt to prevent 'strangers' from coming on board.