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TOPIC QUESTION - PAPER 1
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Ali
September 28, 2025 at 6:10:36 PM
May/June 2022
Version 2
1.0 Understanding Business Activity
1.4 Types of Business Organization
YOUR ANSWER
A partnership can be a good form of business organization as the risk of failure is shared between all partners which reduces the stress and burden for both of them however the profit would have to be shared which means each shareholder gets less profit than if they ran the business alone.
In conclusion, if the shareholders would prefer keeping all the profits it would be better being a sole trader however in order to reduce risk of failure a partnership would be a good idea
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