Advantages Of Sole Proprietorship

Business , Marketing
Main advantages or benefits of sole proprietorship or sole trading concern can be expressed as follows: 

1. Easy To Commence

Formation and operation of sole proprietorship is simple and quick process. Sole trader can establish and run business at any time because it does not require complex registration process and legal formalities.

2. Easy To Wind Up

Sole proprietorship can be easily dissolved at any time if the proprietor wants to wind up the business. 

3. Profit Retention

Sole trader does not need to share profit with others. He/she can retain total profit solely. 

4. Maximum Privacy

Owner of sole proprietorship can maintain high level of privacy because he does not share business secrets and data with other parties. 
advantages sole proprietorship
5. Easy To Manage And Control

Sole trading concern can be easily managed and controlled because it is small form of business organization.


6. Quick Decision

The sole trader can take decision without consulting others. So, there is no delay in decision making.

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7. Prompt Action

Quick decision helps to take prompt action. It ensures smooth operation of business without delay.

8. Low Start-up Costs

Sole trading concern can be established with small amount of capital. The owner can expand business by increasing the capital.

9. Flexibility

Flexibility is another benefit of sole proprietorship. Changes can be made according to the requirement. Business structure and working pattern can be modified or changed as per the environment.
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Disadvantages Of Mail Order Business

Business , IT
Demerits Of Mail Order Business

Some of the notable drawbacks or disadvantages of mail order business can be highlighted as follows:

1. No Personal Contact

Mail order business lacks personal contact between buyer and seller. So, customers cannot get proper instruction and advice before purchasing the good.

2. Not Suitable For All Products

Mail order business is not suitable products that require demonstration. It is also unsuitable for those products which requires after sales services.

3. No Credit Facility

It does not provide credit facility the the customers. So, customers may not be attracted in this business.

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4. Suitability

Mail order business is not suitable for illiterate customers.
disadvantages mail order business
5. Risky

There is a high chance of fraud in mail order business. Sellers may provide low quality products at high price. So, it is risky to buy through mail.

6. High Price

Price of the products high because of high advertising costs and mailing costs. 
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Advantages Of Mail Order Business

Business , IT
Merits Of Mail Order Business

The main advantages or benefits of mail order business can be expressed as follows:

1. Less Capital Requirement

It requires less startup costs to operate mail order business. It can be establish and operated with less amount of capital. Therefore, less capital requirement is one of the main advantage of mail order business.

2. Benefits Of Large Scale Buying

Mail order business can enjoy the benefit of large scale purchasing. Products are purchased in large scale directly from producers. So, price of the products are lower because of bulk buying.

3. No Middlemen

Mail order business completely eliminates business intermediaries and middlemen as products are sold through mail.
advantages mail order business

4. Wider Market

Mail order business has wider market than other forms of retailing institutions. It can be operated nationally and internationally because there is no limit to the market range. 

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5. No Bad Debts

Products are sold on cash basis only. So, there is no risk of bad debts in mail order business. 

6. Home Delivery Service

Mail order business provides home delivery service to the customers. Customers do not need to visit different shops to select products. It saves their valuable time. So, mail order business creates convenience in shopping. 
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Disadvantages Of Multiple Shops

Business , Marketing
Major drawbacks or disadvantages of multiple shops/chain stores can be studied as follows:

1. Large Capital Requirement

It requires large amount of capital to operate multiple shops. So, the producers and entrepreneurs with less capital cannot establish and run such stores.

2. Limited Choice

This is another main drawback of chain stores or multiple shops. These shops offer limited line of products to their customers due to the absence of varieties. 

3. High Operational Costs

Administrative and supervision costs are very high in this type of stores.

                    disadvantages multiple shops
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4. Poor Customer Service

Chain stores do not provide home delivery service, after sale services and credit facility to the customers. There is also no selection facility to the buyers. It negatively effects the image and goodwill of the business.

5. Lack Of Efficient Employees

It is difficult to find efficient and qualified staffs to run multiple shops. Delegation of authority and responsibility is another complex task for the central office.
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Advantages Of Multiple Shops

Business , Marketing
Main advantages of multiple shops or chain stores can be described as follows:

1. Elimination Of Intermediaries

Multiple shops eliminate middlemen and business intermediaries as they are owned and operated by manufacturers/producers.

2. Economy In Buying

Multiple shops enjoy the benefit of bulk buying and mass production. These stores buy large quantity of materials or products at very low cost.

3. Fix Price

There is uniformity in selling price at all the branches and centers. Fixed price helps to build image and goodwill of the store.
advantages multiple shops
4. Low Price

Because of low operation costs, elimination of middlemen and large scale purchasing, these stores can offer quality goods at low price.

5. No Bad Debts

Products are sold on cash basis in multiple shops or chain stores. So, there is no risk of bad debts and outstanding.

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6. Diffusion Of Risk

In multiple shops, the total risk can be divided as the loss of one shop can be covered from the profit of another shop. 

7. Easy To Identify

Customers can easily identify these stores because of uniform decoration and display.

8. Economy In Advertising

Common advertisement for all stores makes economy in advertising. 
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Disadvantages Of Supermarket

Business , Marketing
Major disadvantages or drawbacks of supermarket can be highlighted as follows:

1. Huge Financial Resources Required

It requires huge amount of financial resources to establish and run supermarket. So, it is difficult for small investors and entrepreneurs to start this business.

2. Distance

Supermarkets are located in the busy and overcrowded areas. They are faraway from villages and residential areas. So, suburban people are not benefited from these stores.

3. No Personal Attention

Because of freedom of selection and self-service, employees do not care about the customers. So, it lacks personal attention.
disadvantages of supermarket
4. No Customer Service

 Different services like home delivery service, installation service, after sales service, credit facility etc.  are not provided by supermarket.

5. Not Suitable For All Products

Supermarket is not suitable for the products which require the service and guidance of sellers and experts.
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6. Problems Of Mismanagement

Supermarkets may suffer from mismanagement because of poor communication and coordination among different sections and departments.
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