"They have horses."
Translation:Sie haben Pferde.
That means "you are horses". "You have horses", using "ihr", is "ihr habt Pferde".
You're right, but it's "sie" in this case. Capitalized "Sie" is formal 'you'.
Because hast is used when only one person has something. You have = du hast But in this case more people possess something: they have = sie haben
This is the pattern:<pre>
Ich habe - I have Du hast - you have Er/sie/es hat - he/she/it has<pre>
Wir haben - we have Ihr habt - you have Sie haben - they have
Does anyone know if "sie" (they) is used as a singular pronoun the way it is in English, e.g. I heard someone got hurt, I hope they are all right.