C1.2 Explain how you would class each of the following – as a sole trader, partnership or limited company. List any further questions you might ask for clarification about the nature of the business.

(a) Miss Jones works as an interior decorating adviser under the business name ‘U-decide’.

She rents an office and employs an administrative assistant to answer the phone, keep files and make appointments.

(b) George and Jim work together as painters and decorators under the business name

‘Painting Partners Ltd’. They started the business ten years ago and work from a rented business unit on a trading estate.

(c) Jenny and Chris own a hotel jointly. They operate under the business name ‘Antler Hotel Company’ and both participate in the running of the business. They have agreed to share profits equally.