Question

Leena is a sole proprietor. Over past decade, her business has grown from
operating a neighbourhood corner shop selling accessories such as artificial
jewellery, bags, hair clips and nail art to a retail chain with three branches in
the city. She finds it difficult to handle varied functions in all the branches all
alone. She looks into taking her friend, Rita, into business. Rita has completed
her MBA and will prove to be a great help to Leena.
(a) Explain two benefits of remaining a sole proprietor
(b) Which form of business organization Leena is looking forward to?
(c) Explain how the above form will help in her business?(any three)

Answer 1

Explanation:

(i) She will be able to acquire the funds required for expansion of her retail chain branches countrywide through share capital in a Joint Stock Company.

(ii) Public has more faith in a Joint Stock Company than in a sole proprietorship firm which will help in increasing the customer base for Kiran's business.

iii don't know...

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