Assignment title: Information


Sam and George want to go into business with each other. They want to open up a new bakery which will supply a new kind of bread onto the market. This new bread is similar to those breads from the Middle East. As far as George and Sam are aware, these types of breads are not currently available anywhere in Australia. George has a $100,000 cash which he recently inherited. He is also a qualified baker and has been working for BreadsRUs, a local bakery as its head baker for the last 4 years. George owns his own home which is valued at $500,000. Sam is an accountant. He worked as an accountant for the last 4 years and whilst e has a wealth of accounting knowledge, he has no available cash (accounting salaries are minimal). Sam does however have an AppleMic Computer which is set up with the latest accounting and bookkeeping software. Sam owns a car which is valued at $80,000. He has no other assets. Sam and George want to start their business immediately. Sam has found the perfect premises. It's an old bakery which is already set up with the equipment. The asking price for the business assets is $20,000. The landlord is willing to enter into a new lease with Sam and George for $20,000 pa for 3 years with a 3 year option.Advise George and Sam of the most suitable business structure for their purposes and its basic requirements. Explain why this would be the best structure for their current operations. What are the advantages and disadvantages of your chosen structure?