Basic Statement 1: Firstly Carmen has 2 daughters who wants to transfer the ownership of the business when they are ready.

Development 1: Thus with how easy the transferability of ownership is, Carmen and her partners can agree with the change of partners before ACRA will acknowledge the transfer of ownership to carmen’s daughters.

Basic Statement 2: Secondly, Carmen has no experience with running the restaurant business.

Development 2: Hence with level of control, Carmen can get her partner who is an expert in this business to heavily manage the business, with control shared amongst partners.

Basic Statement 3: Lastly, Carmen does not wish to pay for debts and losses.

Development 3: Therefore for risk, Carmen is not liable for limited liability partnership’s debts and losses if her partner commits a wrongful action in the business.

Basic Statement 1: Carmen hopes that her two daughters are ready to take ownership eventually

Development 1:The two daughters have to agree to the transfer of ownership before ACRA acknowledges this.

Basic Statement 2: The bank is more likely to lend funds to Carmen.

Development 2: Since Carmen has more partners, banks are more likely to lend money to Carmen so that she has funds to keep improving her Japanese Restaurant or have enough money to pay her workers and the bills of the restaurant.

Basic Statement 3: Carmen would like total control over the menu.

Development 3: She will be given a chance to heavily manage the business and therefore have the higher authority to choose what she is willing to have full control of and what area does she need to hire more professionals to assist.

Basic Statement 1: Carmen would have a higher level of control over the business decision.

Development 1: This will enable her to make decisions for the restaurant such what will be sold in the restaurant. She will be able to get professional to help manage the business needs such as managing the future restaurant outlets.

Basic Statement 2: Carmen would have easier access to funds as she can loan money from the bank and there will be a higher possibility of them loaning it to her.

Development 2: Considering that there will be having 2 or more partners joining in starting up her like her relatives, banks are inclined to let her take a loan to expand her business as they have more sources of assets.

Basic Statement 3: Carman would be able to transfer the ownership to her daughters easier as her daughter are interested in culinary arts.

Development 3: Hence, Carman and her partners will be abke to entrust them with restaurant needs as they have background in the line of work.

Basic Statement 1: Carmen would be able to transfer ownerships more easily in a Limited Liability Partnership business.

Development 1:As Carmen and her relatives are working in a business, Carmen’s daughters are also passionate about culinary arts which allows them to be able to be involved in in the business and take ownership eventually. With relatives as partnership, it would be easier for other Carmen and her relatives to acknowledge and transfer the business to the daughters as they might be more trusted and the business may be in good hands.

Basic Statement 2: Carmen and her partners would have a wider access to funds.

Development 2: Carmen has limited investment into the company and she is aware that setting up a restaurant requires a lot more funds where she would request their relatives who are her partners to contribute funds and assets for the business to grow and expand.

Basic Statement 3: Carmen receives the level of control she wants as she would like total control over the menu.

Development 3: Carmen wants be able be able to heavily manage and control the business shared amongst her relatives who are shared partners, which limited liability partnership offers.

Basic Statement 1: Carmen have relatives who want to join the business.

Development 1: For LLP, the owner is allowed to bring in more partners to contribute funds for her. And banks would be likely to lend money as there are more sources or collateral.

Basic Statement 2: Carmen does not wish to pay for debts or losses of the business using her personal assets.

Development 2: The risk is that partners are personally liable for debts and losses resulting from their wrongful actions. Additionally, Carmen does not have to pay for debts and losses using her personal assets. lastly, banks are likely to send money as there are sources of collaterals.

Basic Statement 3: Carmen would like total control of the menu and is open to hiring more skilled chefs and having them take total control of the kitchen

Development 3: At least one partner heavily manages the business, with control shared amongst partners. May hire professionals to assist.

Basic Statement 1: Since Carmen has relatives who are experts in these areas of business and may be keen to set up the business together.

Development 1: Carmen and relatives are able to contribute capital funds into the business. By being a limited liability partnership, they are able to bring in more partners to contribute funds to the business.

Basic Statement 2: Another reason is that since Carmen wants to have total control over the menu.

Development 2: By having a limited liability partnership, she is able to manage and control the business a lot more amongst her partners. She is able to hire professional chefs and still take control of the menu.

Basic Statement 3: Carmen has school going children whom she needs to support financially. By setting up a limited liability company, she does not have to pay for debts or losses of the business using her personal assets.

Development 3: This is because, partners personally liable for debts and losses resulting from their own wrongful actions. Partners that are not involved in others wrongful actions are not liable for debts and losses of the business.

Basic Statement 1:Hiring professional to help manage business

Development 1:

carmen only has experience in the culinary field but none in business manga wants full control of the business menus. Knowing this, she should choose the option of PLC as its more favourable to her desires.

Basic Statement 2: Shareholders will contribute more funds.

Development 2: Shareholders contribute capital. More shares can be issued to raise funds. She would need these funds as she’s only contributing $500,000.

Basic Statement 3: carmen does not wish to pay for debts or losses using personal funds

Development 3:

If carmen incurs any losses the shareholders that invested with their funds would into paying for the losses and debts and she wouldnt have to use her personal funds to pay for the debts and losses as well as keeping herself financially stable for her daughters

Basic Statement 1:

Development 1:

Basic Statement 2:

Development 2:

Basic Statement 3:

Development 3: