Question

After recently graduating from college, you have decided to start a new business. You and several of your friends have decided to sell customized jewelry to wholesalers and directly to customers via an online web portal. You, along with 4 of your friends will each have to contribute $10,000 in initial capital to pay for the jewelry manufacturing, website design and hosting. The total amount of upfront capital is $50,000. The jewelry products are in high demand and are expected to sell with a large profit margin. Your team anticipates making a profit of $200,000 in its first year.

1. How best will you form your organization(Sole proprietorship, Partnership, Corporation), and why did you select this form of business organization?

2. Who should manage the organization? (principals or agents)

Answer 1

No matter what business you prefer to start. The things which matters which can help your business to grow are:

1) Suitable location:

This point states that if you want your organization to flourish then you should have a suitable location to that particular product. In this they started a business of Jewelries and for that you have open your showroom in that place where more people comes which is in near to the market area. This will help your business to grow and more and more people will get to know about your showroom.

2) Satisfying Customers:

This point states that providing satisfaction to the customer is a very crucial factor because if the customers are not satisfied with your service or with your product then they will not prefer to come back again at your place. So providing them satisfaction is very important.

This form of business was selected because they found that this business was having a great Demand in the market and if all went well then it will provide them huge amount of profits and it will also create Goodwill of there business. Before opening any business you should do market research so that you should know what kind of products are having high demands and what kind of products are having low demands.

Organization should be managed by both the principals and the agents because business is not a work of any single person. It requires agents or workers to make it easy for the principals.

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