Alex is an accountant and a sole practitioner offering accountancy services to a number of businesses in
his locality. His main rival is Bethany, who offers similar services. Bethany & Alex have now decided that
they want to join forces and start working together but they are unsure as to which business structure
would be most appropriate for their needs.
They seek your advice regarding which business structure would be most suitable, bearing in mind:
- they wish to avoid significant levels of formality and regulation
- they want to have flexibility in establishing the procedures by which the business
is to be run
- they want to be able to run their affairs in private
- they want to avoid personal liability for the debts and liabilities of the business – the process of creating
the business should be relatively cheap and quick
- they do not want to invest significant amounts of their own capital in setting up
the business and will probably wish to raise capital from outside sources they wish to take on employees.
Discuss and evaluate, to what extent the various business structures fulfil all, or some, of the above aims
and advise Alex & Bethany as to which business structure would be most suitable for their business.
Sample Solution
