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InterviewSolution
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One man control is best in the world if that one man is big enough to manage everything . Explain the statement . |
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Answer» "One man control is best in the world if that one man is big enough to manage everthing"- W.R.Basset . One man control is best in the world because of the unique advantages of one man businesses . These advantages are as follows : (i) It requires less amount of capital . (ii) Ease of formation and closure of business . (iii) Quick decision making without consulting others . (iv)Confidentiality of information . (v) A sole proprietor is the sole recipient of all the profits . lt?brgt (vi) Flexibility of operations because all decisions are made by a single person. These advantages are available provided the man is capable of managing everything . In real life such a person does not exist . A person may be a rich engineer but he may lack financial ability . Therefore , one man business suffers from several . Limitations : (i) Limited financial resources and limited scope for expansion. (ii) Limited life of a business concern depending on the life of the owner . (iii) The sole proprietor has unlimited liability . (iv) Limited managerial ability Though sole proprietorship suffers from various shortcomings , many entrepreneurs opt for this form of organisation because of its inherent advantages . It requires less amount of capital . It is best suited for businesses which are carried out on a small scale and where customers demand personalised services . |
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