Part B: Business Structures question (20 marks)

Read the questions below on Business Structures.

In 1k words (+/- 10% is allowed), answer the chosen given question.

A minimum of 3 genuine and relevant references are required for this part of the report. Examples

of relevant references for this question include the Corporations Act 2001 (Cth); the Australian

and Securities and Investment Commission's (ASIC) website (www.asic.gov.au), the website of

the Australian Business Register's (ABR) website (www.abr.gov.au).

Your references must be listed in a Reference list at the end of the Part B question.

A music promoter has had an offer to bring a famous musical group from England to Australia,

as part of its world tour to promote its new album. The music promoter has done smaller tours

previously, but nothing on the scale proposed by the manager of this famous group, the tour

will cost several million dollars, but is likely to have revenue which will result in substantial

profits for those involved.

The promoter has some contacts at a national radio station which can promote the tour, and

there is at least one financier who is interested in financing the tour in return of course for a

share of the revenue from the tour.

The promoter is calling for a meeting of the different interested parties, he is not sure what

business organisation would be best to manage and conduct the proposed tour, particularly

as it is going to involve various diverse entities, each with their own separate business

interests.

Explain:

The options open to the different parties in what business structure they might use to

promote the tour (8 marks);

The dangers of each type of business structure (6 marks); and

Whether there is any means of limiting risks by each party (6 marks)