The following are 5 independent situations, for each case explain:

a.            Which of the 3 main forms of Australian business organisation is the business is likely to take ( ½ mark each).

b.            State reasons for your answer. ( ½ mark each).

1. Troy Arthur wants to rent CD players and CDs in airports across the country. His idea is that customers will be able to rent equipment and CDs at one airport, listen to the CDs on their flights, and return the equipment and CDs at their destination airport. Of course, this will require a substantial investment in equipment and CDs, as well as employees and locations in each airport. Troy has no savings or personal assets. He wants to maintain control over the business.

2. Three information systems lecturers have formed a business to improve the speed of information transfer over the internet for securities exchange transactions. Each has contributed an equal amount of cash and knowledge to the venture. Although their approach looks promising, they are concerned about the legal liabilities that their business might confront.

3. Billy and Andy wish to purchase a taxi licence. One has a suitable motor vehicle and the other has enough cash to buy the licence.

4. Steven and Cheng each owned separate shoe manufacturing businesses. They have decided to combine their businesses. They expect that within the coming year they will need significant funds to expand their operations.

5. Becks, Elly and David recently graduated with finance degrees. They have been friends since childhood. They have decided to start a consulting business focused on marketing financial products over the internet.

Answer rating: 100% (QA)

1 The form of business organization Troy Arthur is likely to undertake is a sole proprietorship This ... View the full answer