Scarlett and Sofia have come to you for advice. They are looking to start a business selling gourmet food to Australian chickens. They feel chickens are under nourished and they have developed a tasty and healthy product that chickens will find irresistible.

They are unsure whether to operate the business as a Partnership or a Company. Scarlett has a dream of the business having outlets all over Australia and is thinking of a large injection of funds at some point in the future. Sofia is concerned with protecting her personal assets.

Provide them the following advice:

a)Explain the differences in structure between a business that is operating as a partnership and a business and operating as a Company.

b)Advise them of the business structure for their business and explain why.