Word Limit: 2,300-2,500 in total (assignments more than the word limit might not be marked and might be returned to the student for re-writing; assignments less than the needed length will risk not covering the topic sufficiently and might result in a fail). Do not comprise synopsis, references or bibliography in the word count.

Required:

Read the fact situation beneath and finish the tasks in Part A and Part B.

Liam, Nisha, Saul and Jing are first year university students who have newly opened a bakery (Bio Breads) at their university. Liam, Nisha, Saul and Jing have entered a written agreement with the university that allows them to use the university cafeteria ovens all night to bake bread which is then sold from a stall located in the university’s food court.

Only certified biodynamic or organic grains and ingredients are employed in the many different Bio Bread loaves, and on the exceptional occasion ingredients are sourced from overseas, the Bio Bread operators, Liam, Nisha Saul and Jing, make sure only fair trade certified products are purchased. The operators all strongly believe that merely sustainable agricultural practices should be encouraged and that grain growers and other suppliers must be paid a fair price for their labor. In addition to such shared beliefs, Liam, Nisha, Saul and Jing do not approve of large multinational corporations – preferring smaller business structures and the concept of buying from local suppliers wherever probable.

In keeping with their beliefs that a fair price must be paid for labor Liam, Nisha, Saul and Jing believe they as well should receive a reasonable financial return for their labor as bakers and operators of the Bio Breads business.

While prices are kept as low as possible at the bakery, the big volume of sales means which Bio Breads is a profitable operation. The operators select to share the profits equally among themselves.

Liam, Nisha, Saul and Jing are, though, finding it difficult to keep up with demand and frequently have to turn customers away. This is very much against their beliefs that Bio Breads must be a place where all who wish to purchase reasonably priced biodynamic, organic or fair trade food are welcomed. Liam,

Nisha, Saul and Jing are as well struggling to keep up with their studies as they are spending so much time running the bakery.

Liam, Nisha, Saul and Jing approach you for some advice. In specific, they are seeking your opinion about which of the following ways of organizing the business is most suitable given the specific circumstances describeed above.

•    Partnership
•    Co-operative
•    Company

While you are well-known with some of the characteristics of partnerships and companies you have less knowledge about co-operatives, thus you inform Liam, Nisha, Saul and Jing that you require to do some research before you can give them your opinion.

Required: Complete the tasks in Part A and Part B.

Part A: Compare the essential characteristics of partnerships, co-operatives and companies ‘the business structures’.

In your answer you should discuss:

• The respective disadvantages and advantages of each of these business structures.

• The steps needed in forming a partnership, a co-operative and a company – and how each business structure can be ended.

• Further structural options in each of the business structures (illustration: provided certain requirements are met a partnership might be a general partnership or a limited partnership).

• How capital might be increased and any restrictions on capital rising for each business structure.

• The regulatory environment for each and every business structure (is there a specific regulator? Does specific legislation apply to that structure? If so, is it state, common-wealth or a combination of both?)

• Internal management and governance needs for each business structure.

Note: limit your comparison to partnerships, co-operatives and companies – and structures in these. DO NOT discuss sole traders, franchises, joint ventures, associations. And make sure you use the right state based legislation for your location.

Part B: Based on your comparison in Part A, advise Liam, Nisha, Saul and Jing which business structure is most suitable given the specific circumstances of the Bio Breads operations as set out above. In your answer you should give reasons for your advice.

You must as well describe why neither of the other two business structures is, in your opinion, the most suitable.