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MGT211 - Introduction To Business

Suppose you are going to launch a new business of Ready made garments, what type of business you will prefer:

1) Sole proprietorship at smaller scale or

2) Partnership at comparatively larger scale

Justify your answer with logics.

Solution

both answers can be given

Sole proprietorship at smaller scale because no profit sharing is required, decision making is quicker, and independently decisions can be made

Partnership at comparatively larger scale because large sum of investment can be use as capital larger the investments larger will be profits, decision can be rational, profits can be maximize, idea generation is much higher comparatively to sole proprietorship, decentralization of authorities is also one of the benefits of partnership

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