Sole proprietorship form of a business is an ideal choice for starting a new venture, if:
Identify the odd one out.
Identify the odd one out.
Answer & explanation
Correct answer: option 4
Before opting for sole proprietorship, an entrepreneur should carefully compare and evaluate pros and cons of this form. Basically, this type of form is suitable when:
1. Capital requirement is limited
2. Confidentiality / secrecy is important
3. Market is local
4. Goods are of artistic nature or demands customized approach
5. Quick decision–making is necessary
6. Size of the venture is small.
1. Capital requirement is limited
2. Confidentiality / secrecy is important
3. Market is local
4. Goods are of artistic nature or demands customized approach
5. Quick decision–making is necessary
6. Size of the venture is small.