Advantages Of Partnership Firm

Business , Marketing
Advantages or merits of partnership firm partnership firm can be highlighted as follows:

1. Easy To Commence

Partnership firm can be established and operated easily. It does not require legal process and formalities to start partnership business. Registration is not compulsory.

2. Low Set-up Cost

It can be commenced with low set-up costs. It does not require large capital to operate partnership firm. Partners may increase capital to expand their business as per the requirement.

3. High Borrowing Capacity

In partnership firm, large amount of capital can be raised because there are more partners to provide fund. Banks and other financial institution also provide loans easily to the partnership firms as compared to sole trading concern. 

4. Better Management

Better management is possible because of the sense of ownership, combined talent and coordination among the partners.

         Also Read: 

5. Division Of Risk

In partnership firm, all the business losses are borne by all partners as per the partnership deed. Debts and other liabilities are not borne by a single partner like in sole proprietorship.


6. Privacy

It is not compulsory to publish financial statements of partnership firm. So, it helps to maintain privacy and secrecy of the business.
advantages partnership firm
7. Flexibility

The size and working pattern of the business can be modified or changed as per the need and the environment. So, it is a flexible form of business organization.

8. Equal Rights

It ensures equal rights to all the partners. They have equal right to express their feelings, opinions and to take part in decision making process of the firm.

9. Easy To Wind Up

It can be dissolved or wind up easily at any time by making agreement between the partners. It does not require legal formalities to shut down the business.
Read more »
By
Tags ,

Disadvantages Of Sole Proprietorship

Business , Marketing
Main drawbacks or disadvantages of sole proprietorship / sole trading concern can be expressed as follows:

1. Limited Amount Of Capital

In sole proprietorship, it is difficult to raise capital to fund in business. So, future expansion and large scale production is not possible due to the lack of adequate capital.

2. Personal Liability

Sole trader is solely liable for the debts and liabilities of the business because there is no separate legal entity between the owner and the business. So, proprietor's assets are always at risk.

3. Uncertainty

Life of sole trading concern is uncertain and limited. Business will end in case of death or disability of trader.
disadvantages sole proprietorship
4. Lacks Division Of Labor

Due to small size and limited area of operation sole proprietorship lacks division of labor both in operating level and managerial level.
        Also Read: 

5. Unsuitable For Large Scale Operation

Sole trading concern suffers from inadequate capital and limited managerial skills. So, it is not suitable for large scale operation.  
Read more »
By
Tags ,

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.

   Also Read: 

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.
Read more »
By
Tags ,

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.

       Also Read: 

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. 
Read more »
By
Tags , ,

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. 

        Also Read: 

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. 
Read more »
By
Tags , ,

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
          Also Read:

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.
Read more »
By
Tags ,