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LAW 2598 Corporate Law

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Question:

At the end of the meeting, Mr and Mrs Smith raise the following matters about which they seek your advice:
1. Are they currently operating a sole trade business or is it more like a partnership?
2. Whether the way that they are currently operating the business creates any risks?
3. Whether there is a better way for them to operate the business, and if so, what should they do?
4. What business structure would be best for their business in the future if it continues expanding?
5. What business structure would be the most effective way of being able to ensure that their children can become involved and eventually take over?

When Mr and Mrs Smith leave the conference you return to your office and begin preparing a memorandum for the partner.
In your memorandum to the partner you should address the following issues:
A. How you would characterise the current business structure.
B. What risks are involved in operating the business if it is a sole trader or partnership.
C. What business structure would best suit the expanding business.
D. What business structure would be the most effective way of involving their children and eventually handing it over to them.
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[Accessed 22 October 2021].

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