Kiran is a sole proprietor. Over the past decade, her business has grown from operating a neighborhood 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 a company 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 form of the organization?
D. What legal formalities will she have to undergo to operate business as a 1 company?
Answer:A
Kiran is a sole proprietor. Over the past decade, her business has grown from operating a neighborhood 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 a company 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 form of the organization? D. What legal formalities will she have to undergo to operate business as a 1 company?