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Sara had established a home-made papad business in Pune. Papads made by her were very popular in her locality but being the sole owner and manager of business, she could neither introduce many flavours because of limited financial resources.
Which of the following characteristic of her business, does this situation imply?
  • a)
    Individual management and control
  • b)
    Easy formation and closure
  • c)
    Limited area of operation
  • d)
    Unlimited liability
Correct answer is option 'C'. Can you explain this answer?
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Sara had established a home-made papad business in Pune. Papads made b...
One of the demerits of Sole Proprietorship is that it has a limited area of operation as there is only the owner who handles all the responsibilities. 
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Sara had established a home-made papad business in Pune. Papads made b...
C) Limited area of operation

Explanation:
Limited area of operation refers to the geographical boundaries within which a business operates. In this case, Sara's papad business is limited to her locality in Pune. This means that she is only able to sell her papads within a specific area and is unable to expand her customer base beyond this limited geographical boundary.

Limited financial resources:
Sara's inability to introduce many flavors in her papad business is due to her limited financial resources. As the sole owner and manager of the business, she may not have enough funds to invest in research and development, new ingredients, and additional equipment required to introduce a wide variety of flavors. This limitation restricts her ability to cater to diverse customer preferences and expand her product range.

Impact on business growth:
The limited area of operation has a direct impact on the growth potential of Sara's business. By operating only within her locality, she is missing out on opportunities to access a larger market and increase her customer base. This hampers the overall growth and profitability of her business.

Competitive disadvantage:
Limited area of operation also puts Sara's business at a competitive disadvantage. If there are other papad businesses operating in neighboring areas or with wider distribution networks, they may be able to offer a greater variety of flavors and attract customers from Sara's locality. This can potentially lead to a loss of market share for Sara's business.

Conclusion:
In conclusion, Sara's situation implies the characteristic of limited area of operation for her papad business in Pune. The inability to introduce many flavors due to limited financial resources restricts her ability to cater to diverse customer preferences and expand her product range. This, in turn, limits the growth potential of her business and puts her at a competitive disadvantage.
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Sara had established a home-made papad business in Pune. Papads made by her were very popular in her locality but being the sole owner and manager of business, she could neither introduce many flavours because of limited financial resources.Which of the following characteristic of her business, does this situation imply?a)Individual management and controlb)Easy formation and closurec)Limited area of operationd)Unlimited liabilityCorrect answer is option 'C'. Can you explain this answer?
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Sara had established a home-made papad business in Pune. Papads made by her were very popular in her locality but being the sole owner and manager of business, she could neither introduce many flavours because of limited financial resources.Which of the following characteristic of her business, does this situation imply?a)Individual management and controlb)Easy formation and closurec)Limited area of operationd)Unlimited liabilityCorrect answer is option 'C'. Can you explain this answer? for Class 12 2024 is part of Class 12 preparation. The Question and answers have been prepared according to the Class 12 exam syllabus. Information about Sara had established a home-made papad business in Pune. Papads made by her were very popular in her locality but being the sole owner and manager of business, she could neither introduce many flavours because of limited financial resources.Which of the following characteristic of her business, does this situation imply?a)Individual management and controlb)Easy formation and closurec)Limited area of operationd)Unlimited liabilityCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for Class 12 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Sara had established a home-made papad business in Pune. Papads made by her were very popular in her locality but being the sole owner and manager of business, she could neither introduce many flavours because of limited financial resources.Which of the following characteristic of her business, does this situation imply?a)Individual management and controlb)Easy formation and closurec)Limited area of operationd)Unlimited liabilityCorrect answer is option 'C'. Can you explain this answer?.
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