Unit 1: Starting a Business - Activity

The new partners met to discuss the progress of
the business. Siobhan told the meeting that she
had not realised the extent of her liability but was
reasonably happy now that it had been explained to her.
Ricky said that his Gran had some money that she would
like to use to help the business. She didn't want to lend it
to the partners as she did not think it right to charge
them interest. However, she would be happy to share in
the profits instead. Was this possible?


1.As a partner, what sort of liability does Siobhan have?

2.What sort of liability do the other partners have?

3.What sort of partner could Ricky's Gran become?

4.What sort of liability could Ricky's Gran have?

5.Explain why, in money terms, each partner has a different amount of liability.