Assignment:
Company Law
Case Law Analysis
Word Limit: 1000 words
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, 19, 15 and 9. 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 is a retail business. Advise the parents, with reference to the relevant facts, as to how the various business ventures under consideration should be structured.
Required: you are to address the following questions:
1. Discuss the suitability of the different business models to run a retail business.
2. Explain what is the best type of business structure to run a retail business.