The question was a straightforward one but not popular with the candidates.  The very few candidates that attempted the question only gave a general definition of the (a) part without relating it to limited Partnership.

However, the (b) part of the question gave a good compensation to many candidates as they enumerated some correct points on the ways Partnership can raise capital.  Candidates could have even scored very high marks if they had attempted to develop their points.  But majority of them were lazy in giving adequate explanation of their points which kept their overall performance at average.

In order to score high marks in the question, candidates were expected to present their answers as follows:

(a)      Limited partnership is the form of partnership in which the debts of the business are paid from the assets of the business.  In the event of business failure or collapse, the limited partner only loses the amount of money he/she invested.

(b)     -        contribution from partners;
          -        merging with other firms;
          -        taking loans from banks and other financial institutions;
          -        obtaining trade credits;
          -        by borrowing from the partners and friends;
          -        by ploughing back profit.