Tanya Taylor's choice of business Having received her law degree and completed her training, Tanya Taylor was recently accepted to the Bar Association. Tanya
is now optimistic, with a number of grand ideas to implement when she starts her own firm practising corporate law. She has
managed to gather some funds which she thought would be sufficient for start-up. However, as Tanya started doing the neces-
sary paperwork she realised that she would have a shortfall in start-up capital if she needs to pay the rent, buy office furniture
and pay utility bills and her secretary.
This situation is now causing Tanya to think twice about starting a business and she is beginning to think she will probably
just continue working for her current employer. While she is trying to figure out her next move, Kayan, a friend from law school,
calls her to see how she is doing after graduation. Tanya relays her situation to her and Kayan decides to pool some funds to
lend to Tanya at the end of the month.
A week later, Kayan calls to say that another friend is interested in the business and suggests that instead of lending Tanya
the money they would want to come on board and start the business together. The idea sounds good to Tanya and so she agrees.
Questions
1. What type of business was Tanya going to establish initially?
2. What would have been three (3) advantages and three (3) disadvantages of starting that type of business?
3. Based on the fact that her friends are coming on board, which type of business would be the most suitable,
bearing in mind the service that they are offering? Give three (3) reasons for your choice.
4. Outline one (1) benefit and one (1) drawback to Tanya if she had opted to take the loan instead of going
into business with her friends.

Total 25 marks