A case of sole proprietor business
Answers
Answer:
answers are:-
a. The form of business organisation of Radhika Priya Dasi's boutique is 'Sole Proprietorship'.
b. 1. Ease of formation:-
Hardly any legal formalities are required to start a sole proprietary business.
2. Direct Incentive:-
A sole proprietor directly gets the benefits of his efforts as he is the sole recipient of all profits.
3. Flexibility of Operations:-
In a proprietorship business , all decisions are taken by a single person . There are no delays and the business can quickly adapt itself to the changing environment. This provides flexibility to the business.
c. 1. Unlimited Liability:-
Sole proprietors have unlimited liability. In the case of business losses , if the business assets are not sufficient to meet all the business liability , the proprietor may have to sell his personal property to pay off the Liabilities.
2. Limited Resources:-
Resources of a sole proprietor are limited to his/her personal savings and borrowings from others . Banks and other lending institutions may hesitate to extend a long term loan to a sole proprietor.
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