(a) State five features of a partnership business.
(b) Explain five reasons why governments participate in business.
(a) Features of partnership:
(i) A partnership is not a separate entity as a result the partners can be sued in their own rights.
(ii) Members have unlimited liability for debts of the firm.
(iii) It is easy to register and bring into existence.
(iv) Profits and losses are shared equally except otherwise stated in the Deed.
(v) The action of one partner is binding on the other partners.
(vi) Partnerships are mostly formed by professionals.
(vii) It is guided by partnership deed.
(viii) Death or insanity/bankruptcy of a member leads to the termination of the partnership.
(ix) Admission of new members must be agreed by all.
(b) Reasons for government participation in business:
(i) To provide essential services at affordable prices.
(ii) To avoid duplication and waste if left in the hands of the private sector/promotion of efficiency.
(iii) To provide the large capital requirement for certain industries.
(iv) To provide good infrastructural facilities for economic growth and development.
(v) To ensure even development throughout the country.
(vi) to avoid exploitation if such businesses are left for private entrepreneurs.
(vii) To ensure national security in the management of key industries.
(viii) To create employment opportunities for the citizens.
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