An and Bo are partnership together. They buy and renovate properties which they then rent out or sell to other people.

The business has been going for six years and is profitable. They want to expand the business to offer a maintenance And repairs service to both the private sector and public sector.

However, the partners do not have the capital needed for this expansion.

Bo’s sister, Jiao, has said that she is prepared to invest in the business in return for a share in the profits.

An and Bo are also considering changing the legal structure to a private limited company.

a. Identify two features of public sector organizations.

b. Identify two advantages and two disadvantages to An and Bo of being a partnership.

c. Explain two benefits to An and Bo of expanding their businesses.

d. Do you think the partners should become a private limited company? Justify your answer.