Question

Which form of business is suitable for following types of business and why?
(a) Beauty Parlour
(b) Hotels
(c) Shopping malls
(d) Small retail outlet
(e) Medium size trading concern

Answer 1

Answer:

a)beauty parlour - sole propreitorship

d)small retail outletb -sole propreitorship

Sole Trader-ship is suitable.

• Where the personal attention to customer is required as in tailoring beauty parlour.

• Where goods are unstandardized like artistic jewelery.

• Where modest capital & limited managerial skills are required as in case or retail store.

• Business where risk is not extensive i.e., lesser fluctuation in price and demand i.e.

b)Hotels - partnership

e)Medium size trading concern - partnership

When the business happens to be of medium size and the partners have mutual understanding and

goodwill, then partnership form of business organisation is the best eg. C.A. firms, hotels and  factories of middle level etc.

c)shopping malls -Joint stock company

As the requiribility of managerial ability is high and the risk is also high . so collective decision would work in such type of large business

I have given you extra points so that you can solve any this type of questions

Hope this helps you!!

Answer 2

Concept introduction:

Modern business requires different considerations and a particular system through the application of which it is possible for the particular business to continue the safe flow of the business operations.

Explanation:

We have been given the respective businesses along with the forms.

We have to find out the form of the business that are suitable foe the provided type of business operations.

For beauty parlour, sole proprietor is very suitable for maintaining the proper management of the customers.

For hotels, private company form of business is very essential in order to increase the marketing, and customer retention rates.

For shopping mall, a company can be suitable option to account for all the inventories, and records.

For small retail outlet, Sole proprietorship is a better option to maintain the communication with all the stakeholders, and suppliers.

For Medium size trading concern, private company is a better option as it helps to maintain a proper system to carry out all the business operations.

Final answer:

The form of business suitable for the following types are businesses are:

(a) Beauty Parlour - sole proprietor

(b) Hotels - Private company

(c) Shopping malls - company

(d) Small retail outlet - Sole proprietorship

(e) Medium size trading concern - Private company

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