Ava asks you which type of business structure would be best for her situation. Compare and contrast sole traders, partnerships, private and public business structures and suggest which would be best for Ava and her specific commercial goals.
a) Sole trader: Ava would have complete control over the business but would bear all the risks and responsibilities alone.
b) Partnership: Ava could share responsibilities and risks with another individual or entity, but decision-making might be more complicated.
c) Private business: Ava could maintain control over the business without the scrutiny of public shareholders, but funding may be limited.
d) Public business: Ava could access greater funding by selling shares to the public but would face more regulations and scrutiny.
Ava is also concerned about the contract with NanoLab Solutions Pty Ltd, given it was signed before any business had been formally created. Advise Ava regarding the best way to ensure the contract remains active.
a) Ava should ensure that the contract includes clauses allowing for assignment or transfer to a newly formed entity once the business is established.
b) Ava should negotiate with NanoLab Solutions Pty Ltd to extend the timeline for the first payment until the business is operational.
c) Ava should seek legal advice to draft an addendum to the contract clarifying the intention to honor the agreement once the business is established.
d) Ava should explore options for financing the initial payment to NanoLab Solutions Pty Ltd independently until the business is operational.