ying and yang are accountants and partners in their accountingfirm. ying is concerned anout he lavish spending habits of yang whois constantly buying expensive business equipment and creatinglarge amounts of business debt. ying is also concerned that yanghas given some clientss of the firm dodgy gfinancial advice andthat the client my suffer financial loss as a result.
1.explain to ying ,with legal reasons,whether he will be liablefor the business debts and whether he will be liable to compensatethe firm's client should the client sue for compensation forfinancial loss caused by yang's professional negligence.
2.assume yang has been successfully sued for the partnership'sdebts. explain, with legan reasons, what type of business structureshould ying consider to adoptto aviod a repeat of this expensivefinancial lesson and which will also him to keep business affairsprivate. in your answer, identify the formalities that will berequired in creating the new business structure?
