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2 marksEconomic Sectors and Legal Structures

CAPE Management of Business Unit 1 · 2012 · Paper 2 · Question 2(a)(i)

A sole trader is considering expanding her business by either entering a partnership or converting to a limited liability company.

Define the term 'partnership'.

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Other parts of this question

  1. 2(a)(ii)Outline THREE advantages that the sole trader would enjoy by continuing to operate as a sole trader rather than entering a partnership.[6 marks]
  2. 2(b)Discuss TWO advantages and TWO disadvantages of converting the business to a limited liability company rather than forming a partnership.[17 marks]

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