You have the task of advising clients as an accountant. Among your clients is a family

with a mother and father both aged 50 (and with considerable wealth), and four children,

aged 21, 18, 17 and 10. The parents wish to involve their children in their next business

venture. The parents anticipate contributing $2 million of their own capital and having the

venture borrow a further $2 million. The parents seek your advice as to how the venture

should be structured.

The investments under consideration are:

a retail business;

a farm;

a speculative mining venture; and

a long-term investment portfolio.