Dmit is a partner in a small retail clothing business. The business has been successful, but it is finding it difficult to compete against larger retailers. The partners are thinking of converting the partnership into a private limited company.

1. (a)Identify two features of a partnership.[2]
2. (b)Identify two ways of measuring the success of a business.[2]
3. (c)Identify and explain two reasons why the business might be finding it difficult to compete against larger retailers.[4]
4. (d)Identify and explain three methods of promotion that the partnership could use to increase sales.[6]
5. (e)Consider the advantages and disadvantages of converting the partnership into a private limited company. Recommend whether the partners should do this. Justify your answer.[6]