Three friends, Abe, Ben, and Candice, all recently qualified as CAs (Chartered Accountants) and have decided to leave the large national firm they work for to start their own small firm (ABC CA). They are going to share office space and hire one administrative staff person. Each person will be responsible for providing the services to the clients they introduce to the firm.
a. What form of organization would you recommend for ABC?
b. What are the advantages and disadvantages of the form you recommended in part "a"?
c. Which form of business organization would the clients of ABC likely prefer? Why?
d. The three principals have agreed that if the practice grows they will consider adding additional CAs to the firm. What implications would this have for the organization of ABC?