Questions # 1
1) What was the original form of business?
Answer) Ansar Ali was a single owner of auto workshop business before his death. Business form was that time sole proprietorship.
This is simplest form of business organization, which is Controlled, owned and invested the capital by himself; called sole proprietorship.
2) What form of business will be created between Mr. Akram and Mr. Ajmal?
Answer) This form of business will be partnership created between Mr. Akram and Mr. Ajmal. Partnership is the relation of both partners by agreed share ratio of investment in business carried on by all or any of them acting for all. Unlimited liabilities will be for each partner. Partner means lawful business owned by two or more persons.
A business which has partners; two or more than two is known as partnership.
Answer 1:
1. Objectives to start business as “Sole Proprietor”
a. To start will make a business plan which contains objectives of business and the ways to achieve the plan.
b. The objectives to start my business will therefore be:-
(1) To inform and attract the customers, will give a suitable name to business i.,e “School Pick and Drop Service”
(2) Depending on availability of capital whether owned or borrowed, try to start business with single bus (2nd hand) thus economizing on cost and getting high profit rate.
(3) With the passage of time and increase in profit, more buses will be arranged.
(4) Try to arrange reliable, efficient and cheap transportation
(5) Arrange labour i.e, hiring driver / conductor on cheap wages
(6) Besides the cost / profit factor, will ensure good will and good ethic to get sympathies of customers (school kids)
(7) I will maintain direct relationship with workers i.e, driver and conductor to ensure maintenance of bus.
(8) Also will keep a worker to collect monthly profit from parents to ensure accountability of funds.
(9) Will provide incentive to customers as well as workers i.,e
(1) Customer: For more than two kids, the family will be waived off the payment of one kid
(2) Worker: For efficient work and honesty without any complaints from parents, a onetime bonus of Rs 1000 will be paid.
2. Business Structure and Logics for adopting
a. It will be “Sole Proprietor Ship”
b. Logical reasons for adopting this structure :-
(1) Is a small scale work and can easily be formed
(2) Can be controlled and owned by one man and thus is independent to owner
(3) It does not require any complicated legal provision like registration thus saving in legal expenses and taxes
(4) One man (owner) can singly operate and get entire profit as well as loss.
(5) Single owner is the sole master, therefore has full freedom of action
(6) Owner can have direct relationship with customer
(7) Will give personal satisfaction to owner being operated by himself
(8) Will help giving employment to locals i.e, social benefits
3. Promotional Activities
a. Announcement in college and village mosques
b. Issue of broachers at college and villages
c. Personal interaction with college principal and teachers to promote bus service
d. Writing on bus sides with paint along with drawings of school kids
e. Broachers will include fol details:-
(1) Name of business i.e, Al-Hadid Pick and Drop Service”
(2) Emphasis on service performance i.e, strict following of timings
(3) Means of transport being used i.e, bus
(4) Seat capacity, comfort of kids, carriage of bags
(5) Monthly charges for each kid, also incentive announced for any family utilizing service having more than two kids, one kid will be free
(6) Timings for bus, pick and drop
(7) Route of bus with timings
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