QUESTION 1

Cassandra is a university student and a year ago she won an Early Concept Grant of $8000 to develop her innovative idea. Over the past year she has developed a stick-on solar panel for mobile phones that will help extend a phones battery life by up to 10 hours. She has sold the first prototype on campus and the feedback has been incredibly positive. Cassandra is now thinking of setting up her own business. She wants to rapidly expand and grow her production capabilities. Cassandra would like to maintain most of the ownership of her business, but she has limited capital. Fortunately, she does have a rich uncle who is always keen to help family in exciting business plans.

State and explain what form of business you think would be best for Cassandra. Ensure that you help justify your decision by explaining why the other forms of business may not be appropriate for Cassandra.