Business Studies · Oct / Nov 2016 · Paper 12 · Question 4

Moeen and Ali plan to start up a small luxury hotel in the centre of a city in country R. They have a budget of $30000 to pay for all costs. After researching different types of business organisation, as shown in Table 2, Moeen thinks the hotel should be a private limited company. If the business is to be successful, Ali knows choosing the right location will be important. He cannot decide whether to recruit full-time or part-time employees. Table 2: Private sector business organisations in country R (millions) Sole trader 3.0 Partnership 0.5 Private limited company 1.2 Other types of business organisation 0.3

Read automatically from the paper; the printed page above is exact.