GCE Commerce 2023 Theory — Question 3

Model answer

1. Limited resources: unlike a partnership, Samba's access to capital and resources may be constrained, potentially limiting his business growth and investment opportunities. 2. Financial risk: Samba would bear full financial liability for his business, so this personal risk could lead to financial instability and potential loss of personal assets. 3. Skill gaps: as a sole trader, Samba might lack diverse skills necessary for various aspects of the business, since a partnership allows partners to bring complementary expertise. 4. Workload burden: Samba would be solely responsible for all business operations, leading to increased workload, stress, and potential burnout. 5. Lack of decision-making collaboration: without a partner, Samba would lack the benefit of collaborative decision-making and diverse perspectives, potentially affecting the quality of choices and strategies.