Read the case study and write an essay of between 1000 and 1500 words to advise Mr Paul Baker on
which Business ownership option would be best for him after explaining to him the different legal
structures and implications of each of them with regards to ownership.
Mr Paul Baker is the owner of Sey Seaweed, a successful sole trading business that has been in existence
for the past six years. He is in the business of manufacturing fertilisers for plants from seeweeds. After
much scientific research over the years, this product has proved to be one which produces good results
and is showing great prospects in the local market as well as attracting interests in the region , mainly in
Mauritius and Reunion where there is a growing market for these fertilisers. Sey seaweed has obtained a
patent on this product and their processes since this is the first product of its kind made from purely
natural ingredients and raw materials. Last year Mr Baker was approached by some investors who
wanted to invest in his business. Some investors has express their desires to become partners with him
in a partnership whilst some other investors has express their wish to invest as shareholders and
therefore has asked Mr Baker to form a limited company. There are even a couple of investors who has
asked him to buy this business for a few millions of Rupees.
Mr Baker is now giving some thoughts about these proposals. He doesnt know much about the
implications of the other different business structures and doesnt know what to do. He does not know
whether he should continue as a sole trader or consider
what these investors are proposing.
In the light of the different options put before him by these investors, he has asked you to advise him
on the implications of these different options and what would be best for him.
In this essay students should show their understanding by discussing the four different legal business
structures.
In their analysis, in the context of this case study, students should be able to compare and contrast
between the different type of ownership and discuss a maximum of three advantages and disadvantages
that one will have over the other.
Students should include and be able to explain the concept of limited liability and unlimited liability in
the case of each of the business structures and ownership, giving examples.
Recommend to Mr Baker which option would be more advisable to go with and provide reasons. In their
recommendation students should discuss the effects of this chosen businesss ownership on the way
this business will operate and develop
Legal Business Structure:
Explaining the legal Business structure with
examples
comparing and contrasting between the
different legal structures and ownership and
discussing three advantages and three
disadvantages for each
Explaining the concept of limited liability and
unlimited liability and discussing how it
applies in each case
Recommendation: Advising Mr Baker on the
best options and providing reasons
Discussing the three main important effects
that the business ownership which you have
chosen will have on the way this business will
operate and develop.
Introduction: purpose of the essay
And conclusion