LAWS20059: Mrs Smith started a small catering business - Law Assignment

Internal Code: MAS6355

Law Assignment:

You are a newly hired junior associate in an accounting and professional services firm that provides business advice to its clients. Your supervising partner has allocated you a new file to test your knowledge and skills. The partner instructs you to attend a meeting with the clients and then provide him with a report containing advice on the best way forward. You subsequently arrange and attend a meeting with the new clients, Mr. and Mrs. Smith, in which they tell you the following information: 1) 1 year ago Mrs. Smith started a small catering business operating from their home. 2)The business initially involved the supply of food to a small regional airline operating from a nearby airport. 3) Over the last 6 months, they have had offers to expand their business and start supplying food to multiple airlines and from multiple locations. 4) To keep up with the demand Mr. Smith retired from his previous job and started working with his wife. 5)They think their current business structure is basically ‘sole trader’ with all of the contracts in the name of Mrs. Smith, but are not sure if they (Mr. and Mrs. Smith) are actually operating a partnership. 6)They have 3 adult children who eventually they would like to bring into the business and hand it over to them when they retire.