Penny, Jenny, and Tony are three good friends completing the Master of Business Analytics at the Melbourne Institute of Technology. They lost their part-time jobs due to the Corona Pandemic. However, they are very resilient and have started a new catering business mainly to serve customised lunches to various offices. Jenny is mainly responsible for cooking, Penny does most of the online marketing and Tony delivers the lunch boxes to various offices. Penny and Jenny invested $1000 but Tony promised to contribute later if he can save some money. Working hard together they have made a profit of $900 which they shared between them. Required:

(a) What business structure do you think that Penny, Jenny, and Tony have adopted for their initiative?

(b) Imagine two years have passed and they have now completed their studies. They are continuing the same business and it has been exceptionally successful making over $20,000 profit per month. What business arrangement would you suggest in order to expand their business all over Australia? Consider their business idea is successful, but they do not have much money to invest