Answer Happy

Which business structure do you recommend as the most suitable
business structure in the following two situations? Give reasons in
support of your answer. (10 marks)
a) Jay is engaged in a business with two others. Annual turnover
of the business the past two financial years has been over $4m. Jay
finds their business is paying too much tax. Jay needs more capital
to expand their business but is afraid bank may not lend them
expected amount due to stricter lending regulation since the
Banking Royal Commission Report published in February 2019. (5
marks)
b) Jenny has recently retired after working as a lawyer for 30
years. However, to keep herself active and earn some money for
holidays she is planning to sell cup-cakes at the Farmers Market
held in her locality every Saturday. Jenny inherited a unique
recipe for cakes from her grandmother and believes her cakes will
hit the market. Jenny is looking forward to a relatively quiet
lifestyle aims to minimise paperwork or legal complexities. (5
marks)