Kim owns a family business that is experiencing serious difficulties because of changing economic circumstances. It operates as a sole proprietorship and has borrowed from a number of sources (originally commercial, but lately from friends and family) over the last three years to keep the business afloat. There are three employees, without whose services Kim could no longer run the business. He is beginning to feel overwhelmed and needs some basic advice as to what he can and cannot do. For example, should he create a corporation and sell the business assets to that corporation? Should he consolidate his loans and pay off as many as he can now by extending his borrowing with the bank? Who should get paid first? He remembers a business acquaintance who found herself in difficulty when her business failed. Many payments she had made to relatives were reclaimed. Clearly, she had done something wrong, but what was it? If you were Kim’s advisor, what are some basic guidelines you would recommend that he should follow?