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HOS209 - Types of Business Structures - Business Structures Case Study - Business Assignment Help

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Case Study Business Structures 
Chris and Flavia are long-time friends and have always had conversations about  opening a space that combines both their passions: good food and ocean views.  Chris is currently studying hospitality and Flavia works as a chef in a restaurant in  the city. They both decided to get together and open an establishment on the  Northern Beaches of Sydney. 
Flavia and Chris decided to start this business together, but they had no money or  assets of their own to invest in a cafe. They went to the bank together to get  approval for a loan so they can get the business started but were told they need to  find a guarantor for the bank loan. The other option they have is to obtain $100,000  either in the form of a loan or an investment from a private investor who would be  willing to help them to start the project. Chris had a former boss that could help them  with the funding but he wanted the arrangement to be formally documented and  asked them to come back with a proposal. 
Northern beaches are known to be a very competitive area in the café market and  Flavia and Chris need to identify what they can do to differentiate their business from  other cafes to gain customers and be unique. Chris makes and surfboards and he  wants to get some surf-related merchandise to sell in the shop and create an open  space that combines both of his dreams: surfing and food. They have four friends  that want to work with them. Some are open to the idea of becoming partners, but  Chris and Flavia are not sure about bringing in more partners. They will still need to  get three more employees to start the business. 
Flavia would work helping with the menu and marketing and Chris as the manager - responsible for the front-of-house. Both Flavia and Chris will manage the finances.  Flavia can’t work during the weekends because she would like to continue working  as a chef in another restaurant in the city and she needs one day off during the  
week. Chris studies on weekday evenings and does not like to wake up early on the  weekends. 



1. Describe the types of Business Structures that are available to Flavia  & Chris. What are the advantages and disadvantages of each of  these business structures? 
2. Flavia and Chris have asked you to advise them on the best business  structure for their circumstances. What would you advise them and  why?
3. What personal issues do think Flavia and Chris need to consider  before they go into business together? What are the potential  problems that can happen in the future? 
4. What risks or potential complications are there if Chris and Flavia  borrow money from Chris’s friend? 
5. If they asked you for advice on how to best formalize this loan  arrangement and what should be in their proposal. What would you  suggest? 
6. What are the risks or implications of Chris and Flavia allowing  Chris’s friend to come in and become one of the owners of the  business in exchange for his investment of $100,000? 
7. What are the advantages and disadvantages of Flavia and Chris  sharing all the business tasks? Do you have any advice for them.



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  • Posted on : March 15th, 2019
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