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It describes a scenario where Nick Dutton and Alex Hayman plan to create ElectroEndurance to develop an electric-car endurance device. The case sets start-up capital needs of £65,000, contributions from Frank Wells and Mary Freeman, and the desire for director security, limited outside involvement, profit use for development and hiring, plus negotiation guidance. 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To pass SQE2 candidates will need to obtain the overall pass mark for SQE2 .  \nThis sample question and discussion of answer is an example of a case and matter analysis assessment. This is a computer-based assessment and candidates will have 60 minutes to complete the task.  \nFor further detail see the SQE2 Assessment Specification.  \nPlease note that the sample questions are provided to give an indication of the type of tasks that candidates could be set. They do not represent all the material that will be covered in SQE2 . Future questions may not take exactly the same format.  \nQuestion and additional candidate papers  \nFrom: Partner  \nSent: 11 December 202\\#  \nTo: Candidate  \nSubject: Nick Dutton and Alex Hayman  \nYesterday I spoke to some new clients, Nick Dutton and Alex Hayman . They are excited about a new product they have been developing. They explained that this is a device which will enable electric cars to run further than at present before they have to be re-charged. They intend to set up a new company to develop and produce this device . They have worked in the car industry for some time, and have already had some small success in developing car parts. They will work together in this new business venture and we will act for them both.  \nThe Initial Meeting and Proposal  \nNick and Alex have some money of their own to invest in the business. Frank Wells, who is an experienced businessman, is willing to invest in their project. Frank’s sister, Mary Freeman, has also agreed to contribute some capital.  \nNick and Alex have worked out that they will need £65,000 as start-up capital. Nick and Alex between them have £15,000 to invest: they will be putting in £7,500 each.  \nAn initial meeting has taken place and Frank and Mary have agreed to provide the remaining £50,000: Frank will invest £32,500 and Mary will invest £17,500 . It was further agreed that the company will be called ElectroEndurance and that Nick Dutton would be the Company Secretary.  \nAfter the meeting Frank and Mary sent Nick and Alex a letter summarising their position (Attachment 1) and an outline of their proposal (Attachment 2) .  \nImportant Background Information  \nAs you will see from the attached letter, Frank and Mary have made it clear that, since they are taking on a significant risk, they expect an early return on their investment in the company. However, Frank and Mary are both happy to discuss and negotiate their initial proposal.  \nNick and Alex realise that without the investment from Frank and Mary they cannot go ahead with the development and production of their new device. However, if Nick and Alex are as successful as they hope, they would like to take the business forward themselves. They therefore want to know how secure they will be in their positions as directors of the company. They have also said they would prefer to minimise outside involvement in the company. So far as possible they want profits to go into development of the product and recruiting specialist employees, and they want to be in control of making decisions about use of profits.  \nNick and Alex have indicated that they expect to agree with each other on decisions to be made within the company. They expect that Frank and Mary will also agree with each other. However, they recognise that the four of them may not always be in agreement.  \nAdvice and Analysis Required  \nNick and Alex would like advice about this proposal and suggestions for negotiating a better position for themselves bearing in mind what might be acceptable to Frank and Mary.  \nI would like you to provide this advice and analysis for me to use as the basis of a letter to the clients. In providing your advice please bear in mind that Nick and Alex have no experience of forming a company, or running","cbCaibOVnYRu5Y6l","https://ap.wps.com/l/cbCaibOVnYRu5Y6l","pdf",260835,13,"English","# Advice and Analysis Required\n## Question i\n## Question ii\n# Note to Candidates\n# Attachment 1","[{\"question\":\"What is the purpose of this SQE2 sample question and discussion of answer?\",\"answer\":\"It provides an example of a case and matter analysis assessment, outlining a realistic business scenario and the type of advisory response candidates are expected to prepare.\"},{\"question\":\"What business scenario is described in the case?\",\"answer\":\"Nick Dutton and Alex Hayman plan to form ElectroEndurance to develop and produce a device enabling electric cars to travel further before re-charging, with investors providing start-up capital.\"},{\"question\":\"What specific advice and analysis must candidates provide?\",\"answer\":\"Candidates must assess whether Nick and Alex could be removed as directors, recommend negotiation changes to strengthen their position, and propose alternative structuring options for the investment, including advantages and disadvantages from each party’s perspective.\"}]","SQE2 sample question and discussion of answer - Case and matter analysis | PDF",1790033026,33]