A photography business is owned by three sisters - OCR - GCSE Business - Question 12 - 2019 - Paper 1
Question 12
A photography business is owned by three sisters. The sisters have unlimited liability. Which one of the following types of business does the sisters own?
A. A part... show full transcript
Worked Solution & Example Answer:A photography business is owned by three sisters - OCR - GCSE Business - Question 12 - 2019 - Paper 1
Step 1
Identify the type of business
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Answer
The key detail in the question is that the sisters have unlimited liability. This indicates a business structure where owners are personally responsible for all debts incurred by the business.
Step 2
Analyze the options
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Answer
A. A partnership – This is a valid answer, as partnerships often involve unlimited liability.
B. A private limited company – This usually has limited liability, making it not a valid choice.
C. A public limited company – Similar to private limited companies, this structure also includes limited liability.
D. Sole trader – This involves unlimited liability but is owned by one person, not three sisters.
Step 3
Select the correct answer
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Answer
The correct answer is A. A partnership, as it accommodates the unlimited liability condition with multiple owners.
