question_answer

For which of the following types of business do you think a sole proprietorship firm of organization would be more suitable, and why?

(i) Grocery store

(ii) Medical store

(iii) Legal consultancy

(iv) Craft centre

(v) Internet café

(vi) Chartered accountancy firm

Answer:

Ans.     Sole proprietorship will be more suitable for grocery stores, medical store, and internet cafe because:

1. It has easy formation and closure.

2. It needs limited resources.

3. He will be sole risk-bearer which is not so high and profit recipient.

4. He will have 100% control.