Sasha and Emi are two friends who met when they worked together as chefs at a famous restaurant in New York, but both have now moved to Adelaide. They have decided to set up their own restaurant which will fuse the best of the cuisines of Japan (where Emi was born) and Australia (where Sasha comes from. Each of them has come from New York with $100 000, which they want to invest in the new business.

1. It is three months after the mushroom affair, and it turns out the restaurant won the proceedings. (An expert witness showed that mushroom wasnt poisonous to humans, and that the visitor had an unknown allergy to all mushrooms).

However, the publicity of the trial has been really good for Sashemis business. They have full bookings for the next three months.

Sasha and Emi now think that they need to open a more informal version of the restaurant, catering for breakfast and lunch in the city and helping with the increased demand.

They need more capital to fit out the new premises in the CBD. They would also like to bring more investors on board and have many friends and customers interested.

Advise them whether they need to convert to a different type of company in order to expand and take on more capital and thus shareholders.