1. Gurinder Singh always wanted to run a food shop. He decided to buy a franchise. TheonehelikedthebestwascalledThe Cheese Cake Shop.Aftercarryingouthisduediligencehe purchased one of the franchises. Gurinder is unsure of the structure that heshoulduseto run the franchise.

Gurinder owns his own family home worth $1,200,000 which has a mortgage of $250,000 and $20,000 of bitcoins. The bitcoins were worth $120,000 last week before the market correction.

Required:

1. ExplaintoGurinder the main benefitstohim personally ofhavingthe franchise businessrunviaa company rather than as an individual.
2. Could he lose his assets if something went wrong with the business?

1. Elon is a junior accountant/financial adviser working in a prestigious financial services organisation. After working there for 8 years he was promoted to associate director of the company. Under his new employment contract it stated that if he ever left the company he could not contact the clients for 1 year.

After 12 months as an associate director and with the impact of COVID he decided to resign and start up his own business.

Elon established his own private company to run his business. He is aware that under his old employment contract he cannot talk to the clients of the company he left.

Required:

Elon comes to you for advice. He wants to know how he can overcome this legal requirement as he is desperate to get clients and revenue. Please advise him if it is possible or not.

1. Why do you think the Government and the Courts have created exceptions to the legal principle of separate legal entity?