Jenna, Koda and Lula decide to start a business baking expensive wedding cakes. Jenna and Koda will each invest $10 000 in the business. While they don't want to participate in the day-to-day running of the business, they still want to have an active role in management. Lula has no money to invest, but she has years of experience baking cakes.

Lula's son, Asa, also wants to invest $50 000 in the business. He wants to have a steady income from his investment. While he does not want to be involved in the management of the company, he still wants to have some ability to direct how his $50 000 investment is spent.

(a)What legal structure would you advise for their project: a partnership, an incorporated association, a company (if a company, provide details on the type of company) or some other structure?

(b) Why would you recommend this structure? Provide details

Please answer with academic reference and IRAC method