QUESTION 2
21 Discuss the role of Sole trader, Partnership and Companies
resources
22 Read the following case study and answer questions the questions that follow
Two friends. Prudence and Dina completed their matric a year ago and cannot find work
the small town of Badplaas Both obtained a B symbol in CAT at school and can type very
fast. They started doing typing to earn an income and get a lot of typing
contracts from
smal
business owners who cannot afford a full-time typist. They applied for a loan at the bank
,
but
did not succeed. Their parents are willing to lend them the money they need for
an extra
computer printer and small photocopier. They want to register their business as "We type 4
U (Pty Ltd) but don't know anything about forms of ownership.
They have a lot of questions and want you to give them the answers.
Prudence and Dina want to know:
22.1. What is this form of ownership called?
pe
Private company
2.2.2 Will we be liable for the debts of this business if the business gets into financial
trouble?
2.2.3. What do we call the owners of this form of ownership?
2.4.Is there continuity of the business if one of us die?
2.5. What does the law expect about our financial statements?
​