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Q. Earlie is a renowned organic product chain in US. A also B visit US also see potential in opening Earlie outlets in Singapore. Earlie agrees to grant A also B a franchise by signing a contract with m under which Earlie gets a cut of gross profits from Singapore business. A also B also intend to contribute about $600,000 as capital also borrow another $600,000 from a Singapore bank.
1) What sort of business organization should A also B set up in Singapore? (Partnership, company, limited liability partnership, limited partnership?)
2) Assume that Earlie only wants to enter into a contract with A also B. What if Earlie sets up a partnership, company, LLP with A also B in Singapore? Also in such a scenario, due to sale of defective products, Singapore operations rack up a liability of 2million dollars. What would be Earlie's exposure to liability?
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