Question 4 (30 marks) (Your answer should be with maximum 600 words for answering this question.) Oscar is a successful sole trader offering cakes and soft drinks business to many local hotels. His main competitor in the industry is Lily, who offers similar cakes and soft drinks services to restaurants. Oscar and Lily decided to merge their businesses but are unsure as to which business structure would be most appropriate. They seek your advice regarding whether general partnership or limited company would be most suitable business entity that can suit their specific concerns as follows: (1) They want to have simple flexibility in the establishment procedures of the business entity. (i) They want to avoid personal liability for the debts and liabilities of the business when the business is insolvent and closed. (iii) They do not want to invest significant amounts of their own capital in operating the business and will probably wish to raise capital from outside sources. Advise Oscar and Lily as either a general partnership or a limited company is much suitable for the particular concerns of Oscar and Lily. (Confine your discussion on the 3 aspects of formation, investor's personal debt repayment liability for business debts and fund-raising methods of the two forms of business organisation.)