Theory question 106
Business UnitsCommerce 2 (essay, answer five questions only)
(a) Adama and Awa have teamed up to form a partnership business. Explain five benefits they are likely to derive.
(b) State five provisions in the Partnership Deed.
Show the model answer
(a) Any five, explained: more capital; shared risks and losses; combined skills and experience; division of work; easier to obtain loans; continuity when one partner is absent; better decisions through consultation.
(b) Any five: name and address of the firm; names of partners; nature of the business; capital contributed by each partner; profit/loss-sharing ratio; interest on capital and drawings; salaries of partners; duties of each partner; admission and retirement of partners; how disputes are settled; how the partnership is dissolved; date of commencement and duration.
Benefits come from pooling capital and skills.