Sally could not meet the demand, so she spoke to a friend Harry who had some savings and had run businesses in the past. Harry suggested that they enter business together as oo directors of a new company. He would take 50% of the shares in the business and put 20,000 into setting it up. They incorporated their business, Cool 4 Hats Ltd. They bought a van for 6,000, rented a warehouse for 4,000 and put 10,000 into buying new equipment and setting up for online sales and distribution. The company started to meet the orders. A large sportswear manufacturer contacted Sally to ask for a delivery of hats branded with its logo. This offer was never communicated to Harry, and Sally subsequently set up a new company to full the order. After a short period of success, Cool 4 Hats Ltd started to face nancial trouble. The orders had dried up, and they had 10,000 worth of stock which they could not sell. Sally tool-c out a loan for 10,000 to try to advertise the business and improve the company's website. They Med to contact Zanye, but his agent told them that he had contracts with other designers and fashion houses which meant that he oould not help them with more promotion. Against the advice of their accountant, Sally and Harry decided to take out a loan of a further 20,000 from the bank. The business continued to lose money and they defaulted on repayments to the bank. The administrators were called in and they began the process of winding up the company. Question Sally knitted bobble hats for a hobby. She used to give them away to her friends, some of whom encouraged her to turn her hobby into a business. Sally decided to set up a stall, as a sole trader. in the covered market in town for 4 clays a week and paid the local council 100 rent per week for the stall. One clay Zanye, a local man who was an internationally recognised celebrity. bought one of her bobble hats from her stall. He loved it and put a picture on his Instag ram account of him wearing it, telling his followers to get one. Sally was inundated with requests for her bobble hats