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Question - You have just been appointed as a Client Service Officer in a business consulting firm. You are approached by Mr David Warner, a new start-up business client who cannot decide whether he should start the business as the sole owner, or in partnership with his friend, or he should set up a Proprietary Limited company.
From discussion with him you figured out that he prefers to have full control over his business, he does not want to take the risk of losing his personal assets if the business fails and he also likes to take advantage of any tax benefits that might come from the business.
Required -
(a) Outline the advantages and disadvantages of various forms of business to Mr Warner.
(b) Do you think he can have all his wish list fulfilled in any business structure?
(c) Advise Mr Warner what type of ownership structure would best suit his preferences. Explain your reasoning fully to him.
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