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?