Question

What form of ownership did each of the business owners choose?

Why did the business owners you interviewed choose the form of ownership they did?

Explain why you think these business owners have or have not chosen the form of ownership that is best for their particular situations.

Answer 1

The business owners that we interviewed are small shop owners and the business ownership type chosen by them is the sole proprietorship.model.

Sole proprietorship was chosen by most business owners because it was easier to set up the business through this mode and compliance requirements was less. Also it was easier to get funding to expand the business based on the credentials of the promoter itself.

As these businesses were small scale and with limited ambitions to grow them to large scale and list them on public exchanges, so sole proprietorship worked well to set the businesses up quickly and also work with optimal document, compliance and filing requirements.