Reference no: EM133329680

Question 1.

Martin is a sole practitioner offering IT & Data Protection services to customers in Northern Ireland. His main competitor is Derek, who offers similar services. Martin and Derek were friends at university and have now decided that they would achieve significant success if they were to work together. They now seek your advice on which business structure would be most suitable for them bearing in mind that they would wish to expand and create more jobs in the local economy.

Evaluate the various forms of business structure for suitability to the new joint business venture.

Question 2.

Long, Tall and Lengthy are the only three partners in a firm of food preservers who work from premises in Belfast. Last year, the firm experimented with a number of new techniques in preserving organic mushrooms. Unfortunately, the firm has recently been subject to a litigation claim in which it was alleged that they supplied products to their customers of a substandard nature resulting in a number of mild food poisoning negligence claims to be laid against them. Thankfully, there were no fatalities but the firm had no option but to admit liability when the outbreak was fully traced to the fault of the business. Upon further investigation, it appears that a new employee had not ensured that the sterilising unit was heated to the required temperature. Unfortunately for the business, the compensation settlement exceeded the firm's public liability insurance policy limits. Each partner then had to contribute £10,000 towards the outstanding legal costs. The partners do not wish to see that happen again and are seeking your advice as to the best way to re-structure their business.

Advise the partners. In your answer you should explain the concepts of corporate and separate personality, discuss the various forms of business organisations available to the partners and advise the partners on which format you believe to be the most suitable for their needs.