15 Feb Explain the general relationship between the size of a business and its legal structure. 2. Recall the purpose of a sharemarket float. 3. Define the term ‘prospectus’. 4. Outlin
Questions:
1. Explain the general relationship between the size of a business and its legal structure.
2. Recall the purpose of a sharemarket float.
3. Define the term ‘prospectus’.
4. Outline the reasons a sole trader would be motivated to alter the legal structure to become either a partnership or public company.
5. Assume you wish to establish a landscaping business. Determine which legal structure/s you would choose if you wanted to:
a. retain complete control
b. share ownership with no more than 20 people
c. share ownership with no more than 50 people.
d. Give reasons for your answers.
6. Recall the percentage of all the shares sold that a person needs to hold in order to own and control a company.
7. How will a business’s legal structure change as it requires greater injections of finance?
8. Explain what is venture capital as a source of finance AND Outline the possible advantages and disadvantages.
9. Explain why the legal structure a business starts out with may not suit its needs as it grows.
Please answer the questions in full sentences and very detailed. PLEASE THE ANSWERS MUST BE HERE IN AUSTRALIA NOT UNITED STATES. Thank you
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