You are an avid amateur inventor and have stumbled across an idea that may revolutionize the renewable resource sector.You think you have discovered a way to build solar panels so that they can attract and retain energy at least 100 times more efficiently than is the current norm.However, as with any business venture, you realize that there is some risk involved. You have $50,000-worth of investments and share a mortgaged house with your spouse.You also own a one-quarter share of the family farm.

You have drawn up a business plan and estimate that you will need $1,000,000 in order to finance your business. During a class break, you mentioned your idea to a fellow classmate in BLAW - they love the idea and think you're a genius. Your classmate has some truly excellent ideas on how to market the business, and says she has $100,000 that she would like to invest in the business venture. Your family also supports your business idea and has pledged to help you financially.

Question #1 (10 marks)

Define each of the four different business structures that you may use to set up your new business. Identify one advantage and one disadvantage for each structure in the context of the provided facts. Finally, choose a business structure for your new venture and fully explain why you chose the way you did.