For which of the following types of business do you think a sole proprietorship form of organisation would be more suitable and why?
(a) Grocery store (b) Medical store © Legal consultancy (d) Craft centre
(e) Internet cafe (f) Chartered accountancy firm
Sole proprietorship form of business organisation will be more suitable for grocery store, medical store, craft centre and internet cafe.
Reason:
These businesses require less capital, limited managerial talent. These businesses also require personalised services and the risk is some how low in such business.
On the other hand legal consultancy and chartered accountancy firm are not so much suitable for sole proprietorship as they require more capital, balanced decision-making, better management and the associated risk is also very high.