Problem: Think of a small business you have some experience with. The business could be one owned by yourself or a relative, one you have been employed by or one that has provided you with goods or services.

Question 1: Provide a brief description of the activities of the business.

Question 2: Identify the legal ownership structure of the business. Explain why you have classified the business in this particular structure.

Question 3: Compare this legal ownership structure with alternative possible structures.

Question 4: Do you consider that the current legal ownership structure of your chosen business is the most appropriate structure? Provide justification for you answer.

Question 5: a) If you have access to the owner of the business, ask what his or her personal reasons for operating the business are. If you do not have access to the owner, you may speculate about the ownerâ€^TMs personal motives based on your knowledge of the business. If you have to speculate about the motivation, you need to base this on the motivations for business ownership identified in the unit materials and the characteristics of the business.

b) Compare the motivations for owning a small business you have identified above with the objective of wealth maximisation. Draw a conclusion about the importance of wealth maximisation to your small business owner.

Question 6: How many of the key characteristics of small business (see topic 1 notes) can you identify for your chosen business? Provide explanations.