Question

Many students express a desire to start their own business at some point during their lives. Starting a business can be a very risky proposition as 90-95% of businesses fail within the first three years of operation. There are many reasons for this failure. Understanding the various forms of business ownership and their individual benefits can help entrepreneurs succeed at a higher rate. Now that you have studied the different forms of business ownership, pretend you are now opening a new business. What form of business ownership would you choose? For What reasons? What are the "pros" and "cons" of this form of business ownership? Explain your answer in 75-100 words.

Answer 1

i would prefer to start a business concerned with departmental store which would deal with the supply of essential,non luxurious and normal goods(grocery items) after choosing suitable market the business plan can be implemented.

PROS-

1. moderate level of investment
2. convenient to deliver in the nearby area
3. irrelevant of economic cycle
4. uniform demand and supply
5. reliability on revenue

CONS-

1. immense competition
2. lower profit margin
3. liquidity problem
4. high conversion period of stock into funds
5. higher operating cost (due to doorstep delivery without charging additional amount in purpose to increase consumer market share)