CASE STUDY 2.1: LEGAL FORMS OF DOING BUSINESS
TASK DESCRIPTION
Pease read the following case study and complete the 3 assigned tasks
You have decided to open up a cafe in South Australia. The location of the business can be anywhere in South Australia; and it can operate under any name of your choosing. You have decided against a franchise in favour of your own special and unique products and service.
TASK 1
Discuss the best form of business ‘set up’ for your café.
You will need to analyse the options: sole trader, partnership or proprietary limited company by looking at the appropriate legislation (if any) and analysing the advantages and disadvantages of the business model you decide upon.
[5 marks]
TASK 2
Assuming you decide to operate the business under a name other than your own briefly describe the appropriate steps to get that name registered.
[2 marks]
TASK 3
Your best friend Adam wants to join you in this business venture by investing half of the capital required to set up the cafe. This would save you from borrowing more money with interest from the bank.
With what form of business strategy or model can you best accommodate his generous offer?
[3 marks]
TOTAL: 10 marks