NextQ126

Prerna 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, for better management of the business she is thinking to convert her sole proprietorship into some other form of business. She also has plans to open branches countrywide. However, she is afraid of the fact that in case the business incurs losses, her personal property may be called upon to pay the business debts. She is also feeling that she may not be able to effectively manage a large business because of her deteriorating health.(a) Identify and explain the features of sole proprietor business highlighted in the above case. (b) Also suggest to her the form of business organisation which will help her in continuing her business, stating reason in support of your answer.

Business Plan: Marketing & RiskStudy Simplify SpecialPYQ3LQ
Question 125

"One of the components of a business plan effectively establishes how the entrepreneur will compete and operate in the marketplace. It acts as a guideline regarding the marketing objectives, strategies, and activities to be followed by any new enterprise."

(a) Identify the component of the business plan discussed above. (b) Explain the steps described in the plan that help an entrepreneur find the group of customers whose needs the enterprise aims to fulfil.

125/212