Paper 1 · forms of business
A feature of a partnership that distinguishes it from a private limited company is that
Athe firm must publish its accounts in a national newspaper
Bthe firm has a legal identity separate from its owners
Cownership can be transferred freely by selling shares
Dthe partners have unlimited liability for the firm's debts
Explanation: A partnership has no legal personality of its own, so the partners and the business are treated as one. If the firm cannot pay, creditors may claim against the partners' private assets. A company is a separate legal person, which is exactly why its shareholders' liability stops at what they paid for their shares.
Derived from ZIMSEC Business Enterprise Skills Paper 1, Specimen Paper (edition A), Q2