QUESTION ONE

You are a graduate at a business advisory practice. Jemma, a client of the firm, has booked an appointment to seek advice and assistance in incorporating a company. Jemma currently runs a cafe in North Melbourne as a sole proprietor and roasts her own blend of coffee sourced from an ethical plantation in Papua New Guinea. Jemma currently employs three university students on a casual or part-time basis. Jemma wants to expand her business by selling her coffee blend to other cafes around Victoria.

REQUIRED

1. a) Advise your client on the legal and practical consequences of incorporating a company to run the business.

(5 marks)

2. b) Listfivequestionsthatyouwillneedtoasktheclientinthemeetingsothatyouareable to complete the company registration on the clients behalf. For each question, explain why this information is required or is otherwise important.

(5 marks) TOTAL = 10 MARKS