CASE STUDY: Max $($age $31)$ and Kim $($age $28)$ approach you for advice. They are looking into purchasing a subway franchise and setting it up at a spot currently for lease at a nearby food$-$court. Max has cash he intends to contribute towards the purchase $($of the franchise$)$ and lease $($of the premises$),$ but no experience running a fast$-$food eatery. Max intends to leave the operation of the business to Kim while he continues working as an accountant in town. Kim is going to contribute about a quarter of the capital Max is but will be working $100\%$ of the time in the business. They do not need to raise capital at this point but may need to if the business takes off and they expand. Max owns his own home and Kim has an inheritance from her Grandmother which they want to protect from creditors if possible.

CRITICALLY EVALUATE the case scenario above and Advise Max and Kim about an $(1)$ an appropriate entity type or types, $(2)$ how that entity is formed, $(3)$ the governance & management responsibilities each would have, and $(4)$ their consequent liabilities to the business and to each other.

$(8$ marks$)$: mark are awarded for each point made up to a maximum of $2$ marks for each of the four parts to the advice given$).$

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