The business of a sole proprietor is expanding. Should he appoint a manager or admit a partner into business. Give at least three reasons in support of your answer.
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Sole proprietorship is business managed and run by a single individual. When business of a sole proprietorship expands, it is advisable to take in a new partner or appoint a manager.
1. It helps to have either a manager or partner, to manage the increased business and thereby retain customers.
2. A new partner helps to bring in extra capital to the existing business, which may be used for further expansion of the business and increase profits.
3. A fresh entry into an existing business helps to bring in new ideas for optimisation of operations and increase in profits.
1. It helps to have either a manager or partner, to manage the increased business and thereby retain customers.
2. A new partner helps to bring in extra capital to the existing business, which may be used for further expansion of the business and increase profits.
3. A fresh entry into an existing business helps to bring in new ideas for optimisation of operations and increase in profits.
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