Q31. Lakhvinder Singh is confused as to which form of business he should follow for his
garment business. You are his friend. Help him by rationally discussing the different factors
so that he can take a sound business decision.
Answers
Explanation:
Following points should be keep in mind by lakhwinder before opening business.
1. Capital structure: First of all, he has to think how much money he is having for opening the business. If funds are limited then he should opt for small scale business. otherwise large scale enterprise should be established.
2.Knowledge about competitors: He should analyse the competitors strategy so that he could take competitive advantage of that.
3. Taste and preference of consumers: lakhwinder should start that business for which there is demand in the market.
Answer:
following facts could be considered..
Explanation:
If he is going to sell readymade garments on small scale then he could take sole proprietorship.
If he want to do a large scale business then he can opt for partnership with someone else.