Six months ago, Andy posted an advertisement on Facebook Marketplace listing himself as somebody who can...

 

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Six months ago, Andy posted an advertisement on Facebook Marketplace listing himself as somebody who can help install after-market car radios and reverse cameras. What started as a simple hobby on the weekends quickly resulted in Andy receiving several messages a day from people wanting to book a car radio installation. Andy realised this was no longer a hobby, but rather a business operation earning revenue and incurring expenditure. After all, Andy wouldn't mind profiting from his efforts! This means Andy will need to officially register a business, and therefore consider the appropriate business structure. He engages your group to provide him with business advice. Andy specifies that he wants to operate this business into the foreseeable future, but would like the chosen structure to afford him flexibility in the event he decides to cease operations or sell the business. Andy's friend Joey has been a great help to Andy when he takes weekend bookings, and has expressed interest in continuing to assist as operations legitimise and expand. 1. Specify the appropriate business structure for Andy's scenario and justify your choice; 2. Explain the advantages and disadvantages of the chosen business structure relative to Andy's circumstances; Six months ago, Andy posted an advertisement on Facebook Marketplace listing himself as somebody who can help install after-market car radios and reverse cameras. What started as a simple hobby on the weekends quickly resulted in Andy receiving several messages a day from people wanting to book a car radio installation. Andy realised this was no longer a hobby, but rather a business operation earning revenue and incurring expenditure. After all, Andy wouldn't mind profiting from his efforts! This means Andy will need to officially register a business, and therefore consider the appropriate business structure. He engages your group to provide him with business advice. Andy specifies that he wants to operate this business into the foreseeable future, but would like the chosen structure to afford him flexibility in the event he decides to cease operations or sell the business. Andy's friend Joey has been a great help to Andy when he takes weekend bookings, and has expressed interest in continuing to assist as operations legitimise and expand. 1. Specify the appropriate business structure for Andy's scenario and justify your choice; 2. Explain the advantages and disadvantages of the chosen business structure relative to Andy's circumstances;

Answer rating: 100% (QA)

Step 12 Dear Reader As per the context Andy wants to run his personal business along with the associ... View the full answer