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Business now employs around 20 people and demand is increasing rapidly. The partners need to invest much more capital in the business but want to avoid a lot of risk as they both have families
dependent on the income from the business. Their main competitor ShoesForu plc, which has a much larger market share than N and A, and can afford expensive advertising.
Q1) what is meant by partnership?
Q2) identify two possible benefits to amel and nouran to the partnership legal structure
Q3) identify two possible benefits to shoesforu plc of being a public limited company
Q4) identify two possible drawbacks to amel and nouran to the partnership form of legal structure
Q5) if the n and a partnership business continues, recommend whether a private limited company is a suitable form of legal structure for this business. Justify your answer by considering the advantages and disadvantages of a private limited company
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Answers: 2
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