Question: Peter is a sole trader which sells second-hand mobile phones with a business name of Allphones. The revenue of the business has increased from $200,000

Peter is a sole trader which sells second-hand mobile phones with a business name of Allphones. The revenue of the business has increased from $200,000 p.a. in the first year to $3m in the second year. He now approaches you to get your advice in relation to the legal structure of his business. He wants to retain control of his business and is considering setting up a company to further expand his business.

Required:

Advice Peter about the best legal structure for his business. Is sole trader or a company an appropriate business structure in his circumstances?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

6.6 Does marital happiness depend on family income? For the 2002 General Social Survey, counts in the happiness categories (not, pretty, very) were (6, 43, 75) for below average income, (6, 113, 178)...

Q:

Peter is a sole trader which sells second-hand mobile phones with the business name of Allphones. The revenue of the business has increased from $200,000 p.a. in the first year to $3m in the second...

Q:

Peter is a sole trader which sells second-hand mobile phones with a business name of Allphones. The revenue of the business has increased from $200,000 p.a. in the first year to $3m in the second...

Q:

Peter is a sole trader which sells second-hand mobile phones with a business name of Allphones. The revenue of the business has increased from $200,000 p.a. in the first year to $3m in the second...

Q:

Peter is a sole trader which sells second-hand mobile phones with a business name of Allphones. The revenue of the business has increased from $200,000 p.a. in the first year to $3m in the second...

Q:

Peter is a sole trader which sells second-hand mobile phones with a business name of Allphones. The revenue of the business has increased from $200,000 p.a. in the first year to $3m in the second...

Q:

Peter is a sole trader which sells second-hand mobile phones with a business name of Allphones. The revenue of the business has increased from $200,000 p.a. in the first year to $3m in the second...

Q:

Peter is a sole trader which sells second-hand mobile phones with a business name of Allphones. The revenue of the business has increased from $200,000 p.a. in the first year to $3m in the second...

Q:

Peter is a sole trader which sells second-hand mobile phones with a business name of Allphones. The revenue of the business has increased from $200,000 p.a. in the first year to $3m in the second...

Q:

Question 3 Peter is a sole trader which sells second-hand mobile phones with a business name of Allphones. The revenue of the business has increased from $200,000 p.a. in the first year to $3m in the...

Q:

Peter is a sole trader which sells second-hand mobile phones with a business name of All phones. The revenue of the business has increased from $200,000 p.a. in the first year to $3m in the second...

Q:

Accounting for forward commodity price contract as a cash flow hedge. Refer to Examples 15 and 19 in the chapter. Firm D holds 10,000 gallons of whiskey in inventory on October 31, 2008, that costs...

Q:

Imagine that you are an accounting manager. You have been asked to allocate overhead for a production plant, there are three methods to allocate overhead expenses. First, how would you decide which...

Q:

Which of the following is capital expenditure ? A cost of installing a new machine B interest paid on loan borrowed to finance the purchase of a new machine C cost of replacing parts to maintain the...

Q:

5. Develop a scenario comparing two PH programs and involving the use of a CBA.

Q:

1. What do you know about Samuels career anchors that would make this a good choice for him?

Q:

1. When I am upset, I respond rationally so that I can remain analytical and solve the problem or otherwise make the best of the situation.

Q:

3. When verbally attacked, I allow for the likelihood that the attackers might never have learned how to respond when their needs arent met.