Kenny, Sally and Tom are friends from university who decided to start a business together. The goods would resemble everyday carry items for hunters such as pocket knives but will be meant for the professionals. These include a smart phone known as "KST", a multi-function wallet known as "Title and Registration", a series of photography attachments for the mobile phone known as "You are a Visitor" and a series of bath products known as "Soul meets Body".

Kenny is the brains behind the products while while Sally and Tom help to source suppliers and put the products together

After the product development work, they can go to market but realise additional capital is required Nick who is a close friend of Tom agreed to invest capital into the business.

Additional info:

a)At the beginning, Kenny, Sally and Tom each contributed $2,000 to the business which was mostly used up in product development. To start the business, Kenny has agreed to contribute an additional $20,000, whilst Sally and Tom agreed to contribute $12,000 each. Nick has agreed to contribute $30,000;

b)Kenny, Sally and Tom will participate in the business and the running of all operations;

c)Nick does not wish to be involved in the business as intends to continue work as a teacher and does not want to be exposed to any law suit.

d)The friends operate and manage the business on their own and will not hire any employees but anticipate that they would if the business picks up;

e)The trio feel that they should channel all profits back into the business for the first two years;

f)They also anticipate that they will require raising finance in about 6 months after the commencement of their business; and

g)The name of the business shall be called "Ultimate Death".

Advise Kenny, Sally, Tom and Nick on whether they should form a partnership or a private limited company. In your answer, you should:

a)identify the business organization of your choice with a brief description, the structure you are proposing, and

b)discuss in detail three (3) factors which you consider are the most important factors to help them decide which form of business they should undertake.