Joe Smith owns a bookstore as a sole proprietor. He is also a partner in a hotel, which borrowed $100 000 from the bank. Explain if the bank can look to the assets ofJoe'sthe bookstore to pay off the debt. (2 marks)

b. Would your answer have been any different if Joe owned the bookstore as a sole proprietor, the hotel had been incorporated and Joe was a shareholder in that corporation which had borrowed $100 000? Explain if the bank can look to the assets ofJoe's bookstoreto pay off the loan? (2 marks)

Marium, Ben and Anjit are all in business together as a partnership but they have heard that forming a corporation might be a better option. They turn to you as their financial planner for advice.

c. If they decide to incorporate their business explain (not just name) one advantage and one disadvantage about forming a corporation. (2 marks)