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Tim was a marketing manager in a large department store. After the GFC he took a voluntary redundancy package worth $180, 000. His former colleague and good friend Tom who was an accountant of the same department store also took a voluntary redundancy package worth $120,000. Tim is married to Mary who is a full time housewife and they jointly own a house worth $600,000 with a bank mortgage of $300,000. They have minimum savings in their bank accounts. Tom does not own any real estate property but has a saving worth $80,000 in his own bank account. Tim and Tom discuss their future and wish to start a small retail shop together. This business needs a cash fund of $500, 000. Tim coms to you for advice as to what business form he should take with Tom. Compare the features of business forms of sole trader, partnership and a limited liability company and provide your advice with the legal knowledge you have learnt in the first teaching week (both the relevant general law and legislation should be applied).)
This research assignment requires you to analyse and discuss specific legal problems. It measures your ability to:
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