Identify and explain one advantage and one disadvantage to Rosa and Eduardo of forming a business partnership
Knowledge
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[2 × 1]
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award one mark for each relevant advantage/disadvantage
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Analysis
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[2 × 1]
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award one mark for a relevant explanation of each
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advantage/disadvantage
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Application
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[2 × 2]
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award two application marks for each advantage/disadvantage
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Award one mark for each relevant advantage/disadvantage (maximum of two), such as
• Increased capital
• Additional partners to work in the business/help with decisions/holidays/responsibility shared
• Additional specialisms/skills of partners
• More ideas
• Unlimited liability
• No continuity
• Responsible for actions of other partners
• Disagreements may cause problems/arguments
• Slower decision making
• Profit will have to be shared
Award a maximum of three additional marks for each explanation – 2 of which must be applied to this context – of the advantage/disadvantage
Indicative response
Increased capital to put into the business [k] because Rosa and Eduardo will each invest
$50 000 each [ap]. This will reduce the need to borrow money, saving interest payments, [an] when the business expands and moves to larger premises [ap].
Possible application marks: qualified dentists; business set-up 10 years ago in country X;
$50 000 each partner; largest dentist clinics in the country; 1 general manager for the clinic; bank loan to pay for new computer system; reputation for high quality treatments; private patients; 3 months to pay for treatment; move to larger premises; offer teeth whitening; job vacancies for dentists and assistants; information from Appendix 1 and 2.
There may be other examples in context which have not been included here.