Question 3 Answer saved Marked out of 1.00 Harry has just started a business with $100,000 of assets, funded by $80,000 of personal funds and $20,000 debt. Unfortunately, on the opening day, before Harry could take out an insurance policyand before he could make any sales, a customer, Julie, injures herself on business premises andsuccessfully sues for medical bills of $200,000. All business assets can be sold at cost to cover part of the medical expenses. Assume Harry has $500,000 of personal assets, including his $80,000 investment in the business. Which of the following statements is NOT correct? Remove flag a. If the business is set up as a sole trader, Julie will receive $200,000. O b. As the lack of insurance coverage was Harry's fault, if he was in a partnership with Sandra, Harry will still be solely responsible for the payment of medical bills. Sandra avoids liability as she was not responsible for the error. O c. If Harry set this business up as a private company as the sole shareholder, his return on equity would be - 100% O d. If Harry is a sole trader, his return on equity will be -250%. If the business is set up as a company, the customer, Julie, will receive $80,000 towards her medical bill. e