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Determine form of business structure in the following independent situation below.
Charlotte Smith and husband run a printing business. They have been operating as partnership for a couple of years. They expect that within the coming years there will be a significant increase in their sales, as they sign a five-year contract with Deakin College for contract printing. They estimate their profit before income tax to be around $360,000 this financial year. Long before running the printing business, they purchased a couple of rental properties which have been generating more than sufficient income and cash flows for day-to-day personal expense.
Required:
Problem 1: Explain what form of business structure the business is likely to take. Give reasons for your choice.
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