Theory question 104
Business OrganisationsSection B (answer four questions only from this section)
What form of business enterprise would you recommend for a tailor? Give reasons for your answer.
Show the model answer
Model answer
Recommended: sole proprietorship (one-man business).
Little capital is needed to start a tailoring business.
It is easy to set up, with few legal formalities.
The owner takes quick decisions and keeps all the profit.
Personal contact with customers (measurements, styles, tastes) is important and easy to maintain.
The scale of operation is small, so one person can manage it without hired managers.
The tailor can keep business secrets and work flexibly to suit customers.
Explanation
Name the business form first, then give at least five reasons.