CSEC

PRINCIPLES OF BUSINESS AND PRINCIPLES OF ACCOUNTS

School Based Assessment
(SBA)
Name of school: Success laventille Secondary School
Year of Examination:2023
Names of Candidates: KENISHA STREET, KEZIAH WILLIAMS,SHANIA WILSON AND LASHELLE ST. CLAIR
NAME OF TEACHERS: MS.BACCHUS (P.O.B)
MS.RAGHOONANAN (P.O.A)
Title/Topic: An investigation into the changes in profitability when converting a business from a sole
trader to a partnership during the period of April 2018 to March 2020.

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Table of contents
Topic/Issue/
Problem……………………………..
Syllabus Objectives/ Research
Questions.
Background/
Overview…………………………...
Methodology……………………………
……………
Presentation and Analysis of
Data………….
Analysis of
Data……………………………………..
Conclusion………………………………
……………..
Recommendation………………………
…………..

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References………………………………
……………..
Appendix………………………………
………………..

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Topic/Issue/Problem
RESEARCH TOPIC

An investigation into the changes in

profitability when converting a business
from a sole trader(K’s welding
company) to a partnership(K².S.L
welding company) during the period of
April 2018 to March 2020.

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RESEARCH PROBLEM(THESIS
STATEMENT)
K’s is located at 105 ST. James opposite Rennica Delights. K’s has been in business since 2019, the
business is currently operating as a welding company and selling a wide variety of items. For the past
few years business has been excellent and great. K’s welding company has decided to expand his
business from a sole trader to a partnership for greater access to capital to facilitate expansion and
hope to have additional management skills in order to operate more efficiently.

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Objectives/Research Questions
1. To make a profit through the business
2. To create employment by employing persons in the area who are qualified and capable to do
Welding
3. To produce quality tools and materials created by K’s, for construction sites

Syllabus Objectives
1. How much profit is being made through the business
2. There less admin involved
3. Limited input on business matters

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 Background Overview
K's Welding Company is a sole trading company that has been in existence for the
past three years. It provides welding services to customers. With the constant
increase in customer service over the past three years of the company service,
the owner has decided to convert his company to a partnership business.

A lot of businesses tend to face difficulty when it comes to converting their

business from sole trader to partnership, due to additional costs in the business
services which can affect
profitability. To convert service cost, factors of production must be obtained. The
owner has to ensure that the increased cost of production to enable growth can
be covered by increased profitability. According to research, both profitability and
growth are important while some research shows a positive impact between
growth and profitability others also show a negative impact. Some studies show
that profitability has a great relationship with growth, but growth can have either
a negative or positive relationship with profitability. Negative growth shows in the
short term of the business while positive growth shows in the long term of the
business. If the business grows too quickly or converts too much, it can
experience financial, legal, staffing, resource, and supply problems. For business
growth to be successful, it must be sustainable.

Researching and studying the impact of positive and negative growth and
profitability is important. This research helps to determine the differences
between growth and profitability; it can help improve your business skills.

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 Methodology
In order to collect data an interview (Primary Data) was used, this included four
questions see appendix ( ) for questions. These questions were used with both
staff and the manager at prearranged interviews time, The interviews done were
to collect information on K’s trasition from a sole trader to a partnership for it’s
benefits (Another method is viewing financial records such as Profit and Loss
Account and Statement of financial positions ). (Secondary) these records
provided information on the financial status of the business

LIMITATIONS of this process was that all the financial information was not given
because K's could not access the manager as often and certain information was
not given due to privacy policy, the business had difficulty getting information
and paper work from the employees and staff, the problem the business also
encounter is work had to be sent through soft copies which will be only on emails
and google dot.