Mary, Elizabeth and Bill run a business which sells imported European groceries online
and at its bricks and mortar store in Melbourne. The business has an annual turnover of
$6,000,000 and 30 employees, and profits of the business are shared between Mary,
Elizabeth and Bill. Mary, Elizabeth and Bill would like to expand their business by
importing new groceries from Asia and buying another store in the Docklands which they
hear is running at a loss. They do not want to take out a loan from a bank or bring in any
new people into the business.
Question 1(a) [5 marks]
What business structure are Mary, Elizabeth and Bill currently using? Explain your
answer. You may assume that the business structure has not been registered with
government and that property is owned personally.