Q. 13.8( 6 Votes )
The structure in which there is a separation of ownership and management is called
A. Sole proprietorship
D. All business organisations
Company is a legal entity formed by a group of individuals to operate a business.
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What do you understand by a sole proprietorship firm? Explain its merits and limitation?NCERT - Business Studies
The structure in which there is a separation of ownership and management is calledNCERT - Business Studies
Kiran is a sole proprietor. Over the past decade, her business has grown from operating a neighbourhood corner shop selling accessories such as artificial jewellery, bags, hair clips and nail art to a retail chain with three branches in the city. Although she looks after the varied functions in all the branches, she is wondering whether she should form accompany to better manage the business. She also has plans to open branches countrywide.
(a) Explain two benefits of remaining a sole proprietor.
(b) Explain two benefits of converting to a joint-stock company.
(c) What role will her decision to go nationwide play in her choice of a form of the organisation?
(d) What legal formalities will she have to undergo to operate business as a company?
NCERT - Business Studies