Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Which business structure do you recommend as the most suitable business structure in the following two situations? Give reasons in support of your answer. (10

Which business structure do you recommend as the most suitable business structure in the following two situations? Give reasons in support of your answer. (10 marks)

a) Jay is engaged in a business with two others. Annual turnover of the business the past two financial years has been over $4m. Jay finds their business is paying too much tax. Jay needs more capital to expand their business but is afraid bank may not lend them expected amount due to stricter lending regulation since the Banking Royal Commission Report published in February 2019. (5 marks)

b) Jenny has recently retired after working as a lawyer for 30 years. However, to keep herself active and earn some money for holidays she is planning to sell cup-cakes at the Farmers Market held in her locality every Saturday. Jenny inherited a unique recipe for cakes from her grandmother and believes her cakes will hit the market. Jenny is looking forward to a relatively quiet lifestyle aims to minimise paperwork or legal complexities. (5 marks)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Speed Of Risk Lessons Learned On The Audit Trail

Authors: Richard F. Chambers, CIA, QIAL, CGAP, CCSA, CRMA

2nd Edition

163454059X, 978-1634540599

More Books

Students also viewed these Accounting questions

Question

Identify the types of informal reports.

Answered: 1 week ago

Question

Write messages that are used for the various stages of collection.

Answered: 1 week ago