Margo, Sanjita, Brian and Juliette have just completed their post graduate certificate in Event Management. They got on famously when they studied together and are thinking about starting their own business enterprise together. Margo excelled in digital marketing, Sanjita more of a finance wizard, while Brian and Juliette are more the creative types. With the exception of Sanjita who just won the Lotto Max (60 million), they all have some student debt to pay off and Brian is married with a family. (a) Which type of organization would be least favourable for Sanjita?

They began their business 6 months ago now, creating and executing highly sophisticated virtual events to clients. They are doing really well, with everything surpassing their expectatons, they work well with each other, trust each other implicity and run off their feet with the demand for their expertise. Everything is discussed and nothing is signed off unless they all agree. They have a joint bank account where profits are deposit weekly. Profits and losses are share every quarter equally between them. Their reputation for quality , professionalism and execution is growing rapidly. They are now thinking seriously about bringing in another person to cope with the demand. The following information is pertinent: Sanjita contrbuted 50% of the start up capital, Brian and Juliette 25% each. Margo felt her skills were the most essential to the business and therefore did not contribute to the start up. She has indeed been a huge asset to the business, they really could not manage without her. She has suggested a person to bring in to join the business, however, Brian is objecting to this. (b) (i) Which type of business organization are the parties running? Why? (ii) Do they need to have an agreement between them? If so, why?