ACCT605 Accounting Legal and Regulatory Framework

Four friends – Moana, Avi, Chen and Robin have plans to start a business by combining their individual skills and resources, which will give them a better chance to be successful in their business endeavour.  They realise they will need increased funding for their business (Avi has plans to go global).

 They have been advised to visit a Chartered Accountant for advice on how to move forward.

REQUIRED: Using the scenario above answer the questions below:

Question 1:    

What standard of ethical behaviour can they expect from the Chartered Accountant(s) they engage to give them advice?

Question 2:

They would like advice on which is the best structure for them to operate their business under - either a partnership or a company – and information on what regulations would impact on their choice.  Consider the rights and responsibilities of both partners and shareholders, liability, disclosures, record keeping.  Discuss the options available.