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Tim was a marketing manager in a large department store. After the GFC he took a voluntary redundancy package worth $180, 000. His former colleague and good friend Tom who was an accountant of the same department store also took a voluntary redundancy package worth $120,000. Tim is married to Mary who is a full time housewife and they jointly own a house worth $600,000 with a bank mortgage of $300,000. They have minimum savings in their bank accounts. Tom does not own any real estate property but has a saving worth $80,000 in his own bank account. Tim and Tom discuss their future and wish to start a small retail shop together. This business needs a cash fund of $500, 000. Tim coms to you for advice as to what business form he should take with Tom. Compare the features of business forms of sole trader, partnership and a limited liability company and provide your advice with the legal knowledge you have learnt in the first teaching week (both the relevant general law and legislation should be applied).)
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