This business/management problem is solved step by step below, with detailed explanations to help you understand the method and arrive at the correct answer.

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a) The type of business registered by Ama and her friends was a Partnership.
b) Five items that the Gara Tie-Dying Enterprise dealt in are: • Window curtains • Door curtains • Bedspreads • Tie-dyed fabrics • Tie-dyed clothing
c) Three factors that led to a drop in sales at Gara Tie-Dying Enterprise are: • Competition from Hope Investment Company Limited, which sold similar items at lower costs. • Unsatisfied employees due to long working hours and low incentives. • Employee resignations, as staff left to seek employment in other companies.
d) Three advantages of a limited liability company are: • Limited liability: Owners' personal assets are protected from business debts. • Separate legal entity: The company exists independently of its owners, allowing it to enter contracts and own assets. • Continuity of existence: The company can continue operating even if ownership changes or an owner leaves.
e) Three disadvantages of a partnership (the type of business registered by Ama and her friends) are: • Unlimited liability: Partners are personally responsible for the business's debts. • Lack of continuity: The partnership may dissolve if a partner leaves, dies, or becomes incapacitated. • Potential for disputes: Disagreements can arise among partners regarding management, profit sharing, or business decisions.
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This business/management problem is solved step by step below, with detailed explanations to help you understand the method and arrive at the correct answer.