ACCA考试

【分析解答题】Thapelo is a computer technician. He has worked for several years at a leading IT firm and now wishes to go into business for himself, offering IT solutions to businesses.Initially, Thapelo intended to go into the business as a single entrepreneur. However, he anticipates that his brother Kago will join him in the business when he completes his schooling in a year’s time.As Kago will have no money to buy into the business, Thapelo is interested in a corporate form that will allow Kago to borrow money from the business entity for the purpose of acquiring an interest in it. Thapelo also wishes that the business entity should be one capable of continuing in existence in the event that either he or Kago leave it.Thapelo is also concerned that he shall not be able to meet the rigorous statutory management and accounting requirements facing a business entity subsequent to incorporation. Since he will eventually be in business with his sibling, Thapelo would prefer an informal arrangement that will allow him and Kago to spend more time working and building the business and less time in management meetings. Thapelo comes to you for advice on the best corporate form for his enterprise.Required: (b)Explain the advantages and disadvantages of the proposed corporate form in comparison to other incorporated entities. (4 marks)
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