Theory question 102
Business UnitsCommerce 2 (essay)
(a) State five features of a partnership business.
(b) Explain five reasons why governments participate in business.
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(a) Any five: 2 to 20 members (banking partnership up to 10); formed by agreement/deed; capital from partners; unlimited liability (except limited partners); profits shared as agreed or equally; each partner can bind the firm; not a separate legal entity; ends on death, bankruptcy or insanity of a partner; shares not transferable without consent.
(b) Any five, explained: to provide essential services at affordable prices; to provide large capital needed for some industries; to provide infrastructure; to ensure even development; to prevent exploitation by private monopolies; to control strategic industries/national security; to create jobs; to earn revenue.
In (b) explain each reason in a sentence.