Mr. Kapil wants to do a trading business in which there is buying and selling of only a few goods. Also, he wants that he should choose such a form of business organization in which there is no shortage of capital for managerial inefficiency. What form of internal trade and business organization would you suggest to Mr. Kapil? Justify your answer with valid reasons.
Solution :-
1) As per above given case, Mr. Kapil wants to do a trading business in which there is buying and selling of only a few goods.
Hence, Retail Trade is a form of Internal Trade which includes buying and selling goods in smaller quantities.
Retail trade refers to the buying and selling of goods in small quantities for final consumption. In other words, retail trade basically refers to the final stage of distribution wherein the retailers directly sell the goods to the ultimate consumers. Under this trade, the retailers act as a link between the manufacturers and the consumers as they buy goods from the manufacturers or wholesalers and sell them directly to the consumers.
2) Mr. Kapil also wants that he should choose a form of business organisation in which there is no shortage of capital for managerial inefficiency. Therefore, Sole Proprietorship is preferred.
Sole proprietor firm is a business owned,managed and controlled by a single individual. These businesses require a lower capital and lesser managerial ability to handle the day-to-day operations. The sole proprietor has all the rights to make decisions and carry out plans as per his or her own will.
1) As per above given case, Mr. Kapil wants to do a trading business in which there is buying and selling of only a few goods.
Hence, Retail Trade is a form of Internal Trade which includes buying and selling goods in smaller quantities.
Retail trade refers to the buying and selling of goods in small quantities for final consumption. In other words, retail trade basically refers to the final stage of distribution wherein the retailers directly sell the goods to the ultimate consumers. Under this trade, the retailers act as a link between the manufacturers and the consumers as they buy goods from the manufacturers or wholesalers and sell them directly to the consumers.
2) Mr. Kapil also wants that he should choose a form of business organisation in which there is no shortage of capital for managerial inefficiency. Therefore, Sole Proprietorship is preferred.
Sole proprietor firm is a business owned,managed and controlled by a single individual. These businesses require a lower capital and lesser managerial ability to handle the day-to-day operations. The sole proprietor has all the rights to make decisions and carry out plans as per his or her own will.