Please Explain this in reference to Australian Law thank you!

Max is a sole trader accountant. His accounting business is not doing well and has recorded very little profit. Unfortunately, he made some errors that caused a financial loss to one of his clients. His client knows that the profits from the business will not cover the damage and is insisting Max dig into his personal savings to pay damages.

Required:

Explain to Max whether the client has the right to do this. (5 points)

Explain what business structure Max could have used to prevent this from occurring. (5 points)