Two questions are listed below, submit a written document on each.

Question 1

Ryan, Tamara, and Tami have just graduated from the University of Nepal, each with an accounting degree. They are all agreed that self-employment is a more attractive prospect by which they can establish a successful business in which their qualifications will be an asset. They may want to do something together as well as they might not.

What are the likely business vehicles that any or all of them may consider adopting and what would you advise them to take into account in choosing the most appropriate vehicle.

Question II

Dean is a successful sole practitioner offering accountancy and business consultancy services to a number of local companies. His chief competitor is Caroline, who offers similar services. Caroline and Dean decide that they wish to work together, but are unsure as to which business structure would be most appropriate. They seek your advice regarding which business structure would be most suitable, bearing in mind:

they wish to avoid significant levels of formality and regulation

they want to have flexibility in establishing the procedures by which the business is to be run

they want to be able to run their affairs in private

they want to avoid personal liability for the debts and liabilities of the business

the process of creating the business should be relatively cheap and quick

they do not want to invest significant amounts of their own capital in setting up the business and will probably wish to raise capital from outside sources they wish to take on employees.

Discuss to what extent the various business structures fulfil all, or some, of the above aims and advise Dean and Caroline which business structure would be most suitable for their business