Question

You are a business consultant . Mr . Madanpal has recently retired from government service . He is 60 years old and he wants to set up a factory to manufacture plastic goods . He has come to consult you so that you may suggest to him the most suitable form of business organisation . The following are his main expectations from the business organisation .
(i) Ease in formation,
(ii) Flexibility in operations,
(iii) Sharing of profits with limited persons and
(iv) Sufficient persons to look after various business activities .
Which form of business organisation will you suggest to Mr. Madanpal ? Give reason in support of your answer .

Answer 1

Partnership form of organsation will suit Mr. Madanpal .
Reasons :
(i) Setting up a partnership firm is quite easier than company organisation .
(ii) Since the number of partners is limited , operational decisions can easily be changed .
(iii) In partnership form of organisation , sharing of profits is with limited persons .
(iv) The availability of persons to look after the different business activities is more than one .