QUESTION 1 [Total mark = 15 marks] Sergio and Elisa are twins with complementary but different personalities. Sergio is a business student with people skills and a flair for management but a fear of being sued. Elisa, who studies engineering, is introverted, hands-on and a risk taker. Sergio and Elisa are considering two ideas for a joint business. First, Elisa has recently completed a promising project in one of her engineering classes. Together with two engineering classmates, she managed to refine a technology that prevents mid-air collisions between drones. Elisas lecturer says that there is considerable potential to commercialise the refined technology, including for use in pilot-less planes. He has offered to put Elisa and her friends in touch with a venture capitalist. Second, Sergio has identified a potential opportunity in real estate. He has saved just enough cash to put down a deposit on a unit in the outer suburbs of Brisbane. His idea is that he and Elisa should buy the flat, live in it and then sell it later, splitting the profits. Meantime, he and Elisa will pay off the mortgage with income from their part-time jobs, and Elisa will use her handy woman skills to help fix up the property. Advise Sergio and Elisa on which business structure they should use to pursue each of these two ideas. Include in your advice a discussion of the relative advantages and disadvantages of that structure in the circumstances, and some tips on establishing that structure so that it is best suited to their situation. Using ILAC method.