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Learned!

To learn new things is beneficial at any age, and any kind of learning can benefit other aspects of your life. For instance, taking music lessons can increase your language skills. If you’re interested in a topic, study it. If you’d like a new skill, practice it. Your life is ever-changing and infinitely complex, and your ability to experience it depends on your willingness the learn. The more you learned, the more you live.

Embrace failure and confusion. When you are learning a new thing, you are entering into unknown territory. Allow yourself to experience the confusion of unanswered questions and unfamiliar parameters. When you study a new topic, don’t look up answers to your questions right away. Instead, spend some time trying to figure the answers out on your own. This kind of trying (and failing) helps you better understand what you are learning.

What is the Deductive Method of Economics?
The Deductive Method: Deduction Means reasoning or inference from the general to the particular or from the universal to the individual. The deductive method derives new conclusions from fundamental assumptions or truth established by other methods. This article explains the Deductive Method of Economics; It involves the process of reasoning from certain laws or principles, which are assuming to be true, to the analysis of facts. Also learn, What are the Methods of Economics?

Here are explaining and learn, What is the Deductive Method of Economics? Steps, Merits, and Demerits.

Then inferences are drawn which are verifying against observing facts. Bacon described deduction as a “descending process” in which we proceed from a general principle to its consequences. Mill characterized it as a priori method, while others called it abstract and analytical.

Deduction involves four steps:
1. Selecting the problem.
2. The formulation of assumptions based on which the problem is to explore.
3. The formulation of hypothesis through the process of logical reasoning whereby inferences are drawn.
4. Verifying the hypothesis.
These steps are discussing as under, Following are:

Selecting the problem:

The problem which an investigator selects for inquiry must state clearly. It may be very wide like poverty, unemployment, inflation, etc. or narrow relating to the industry. The narrower the problem the better it would be to conduct the inquiry.

Formulating Assumptions:

The next step in deduction is the framing of assumptions which are the basis of the hypothesis. To be fruitful for inquiry, the assumption must be general. In any economic inquiry, more than one set of assumptions should make in terms of which a hypothesis may formulate.

Formulating Hypothesis:

The next step is to formulate a hypothesis based on logical reasoning whereby conclusions are drawn from the propositions. This is done in two ways: First, through logical deduction. If and because relationships (p) and (q) all exist, then this necessarily implies that relationship (r) exists as well. Mathematics is mostly using these methods of logical deduction.

Testing and Verifying the Hypothesis:

The final step in the deductive method is to test and verify the hypothesis. For this purpose, economists now use statistical and econometric methods. Verification consists of confirming whether the hypothesis is in agreement with facts. A hypothesis is true or not can verify by observation and experiment. Since economics is the concern with human behavior, there are problems in making an observation and testing a hypothesis.

For example, the hypothesis that firms always attempt to maximize profits rests upon the observation that some firms do behave in this way. This premise base on a priori knowledge that will continue to accept so long as conclusions deduced from it is consistent with the facts. So the hypothesis stands verified. If the hypothesis not confirms, it can argue that the hypothesis was correct but the results are contradictory due to special circumstances. Explain are Economics is a Science and Art?

Under these conditions, the hypothesis may turn out to the wrong. In economics, most hypotheses remain unverified because of the complexity of factors involving in human behavior which, in turn, depend upon social, political and economic factors. Moreover, controlled experiments in a laboratory are not possible in economics. So the majority of hypotheses remain untested and unverified in economics. Also learn, What are the Fundamentals of Economics?

Merits of the Deductive Method:

The deductive method has many advantages.

Real:

It is the method of “intellectual experiment,” according to Boulding. Since the actual world is very complicated, “what we do is to postulate in our minds economic systems which are simpler than reality but more easy to grasp. We then work out the relationship in these simplified systems and by introducing more and more complete assumptions, finally, work up to the consideration of reality itself.” Thus, this method is nearer to reality.

Simple:

The deductive method is simple because it is analytical. It involves abstraction and simplifies a complex problem by dividing it into parts. Further, the hypothetical conditions are so chosen as to make the problem very simple, and then inferences are deducing from them.

Powerful:

It is a powerful method of analysis for deducing conclusions from certain facts. As pointed out by Cairnes, The method of deduction is incomparable, when conducted under proper checks, the most powerful instrument of discovery ever wielded by human intelligence.

Exact:

The use of statistics, mathematics, and econometrics in deduction brings exactness and clarity in economic analysis. The mathematically trained economist can deduce inferences in a short time and make analogies with other generalizations and theories. Further, the use of the mathematical-deductive method helps in revealing inconsistencies in economic analysis.

Indispensable:

The use of the deductive method is indispensable in sciences like economics where experimentation is not possible. As pointed out by Gide and Rist, “In a science like political economy, where an experiment is practically impossible, abstraction and analysis afford the only means of escape from those other influences which complicate the problem so much.”

Universal:

The deductive method helps in drawing inferences that are of universal validity because they are based on general principles, such as the law of diminishing returns.

Demerits of Deductive Method:

Despite these merits, much criticism has been leveled against this method by the Historical School which flourished in Germany. Explain are What is Economics? Meaning and Definition of Criticisms.

Unrealistic Assumption:

Every hypothesis is based on a set of assumptions. When a hypothesis is testing, assumptions are indirectly testing by comparing their implications with facts. But when facts refute the theory based on the tested hypothesis, the assumptions are also indirectly refuted. So deduction depends upon the nature of assumptions. If they are unrealistic, in this method, economists use the ceteris paribus assumption. But other things seldom remain the same which tend to refute theories.

Not Universally Applicable:

Often the conclusions derived from deductive reasoning are not applied universally because the premises from which they are deducing may not hold good at all times and places. For instance, the classicists assumed in their reasoning that particular conditions prevailing in England of their times were valid universally. This supposition was wrong. Prof. Lerner, therefore, points out that the deductive method is simply “armchair analysis” which cannot regard as universal.

Incorrect Verification:

The verification of theories, generalizations or laws in economics is based on observation. And right observation depends upon data which must be correct and adequate. If a hypothesis is deducing from wrong or inadequate data, the theory will not correspond with facts and will refute. For instance, the generalizations of the classicists were based on inadequate data and their theories were refuted. As pointed out by Ircholson, “the great danger of the deductive method lies in the natural aversion to the labor of verification”.

Abstract Method:

The deductive method is highly abstract and requires great skill in drawing inferences for various premises. Due to the complexity of certain economic problems, it becomes difficult to apply this method even at the hands of an expert researcher. More so, when he uses mathematics or econometrics.

Static Method:

This method of analysis is based on the assumption that economic conditions remain constant. But economic conditions are continuously changing. Thus this is a static method that fails to make the correct analysis.

Intellectually:

The chief defect of the deductive method “lies in the fact that those who follow this method may absorb in the framing of intellectual toys and the real world may forget in the intellectual gymnastics and mathematical treatment”.

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March 24, 2018
What are the Methods of Economics?
Methods of Economics: First, Definition of Economics as; The social science concerned with the efficient use of limited or scarce resources to achieve maximum satisfaction of human materials wants. This article explains the Methods of Economics; Economic methodology is the study of methods, especially the scientific method, about economics, including principles underlying economic reasoning. The deductive and inductive method involves reasoning from a few fundamental propositions, the truth of which is assumed. Human wants are unlimited, but the means to satisfy the wants are limited. Also learn, What are the Fundamentals of Economics?

Here are explaining and learn, What are the Methods of Economics?

The following Methods of Economics below are;

The Economic Perspective:
- Scarcity and choice: Resources can only use for one purpose at a time. Scarcity requires that choices make. The cost of any good, service, or activity is the value of what must give up to obtain it. As well as, How to explain the Nature of Business Economics?
- Rational Behavior: Rational self-interest entails making decisions to achieve maximum fulfillment of goals. Different preferences and circumstances lead to different choices. Rational self-interest is not the same as selfishness.
- Marginalism – benefits, and costs: Most decisions concern a change in current conditions; therefore the economic perspective is largely focusing on marginal analysis. Each option considered weighs the marginal benefit against the marginal cost. Whether the decision is personal or one made by business or government, the principle is the same. The marginal cost of action should not exceed its marginal benefits. There is “no free lunch” and there can be “too much of a good thing.”
Why Study Economics?

The below are;
- Economics of citizenship: Most political problems have an economic aspect, whether it is balancing the budget, fighting over the tax structure, welfare reform, international trade, or concern for the environment. Both the voters and the elected officials can fulfill their role more effectively if they have an understanding of economic principles.
- Professional and personal applications: The study of economics helps to develop an individual’s analytical skills and allows students to better predict the logical consequences of their actions. Economic principles enable business managers to make more intelligent decisions. Economics can help individuals make better buying decisions, better employment choices, and better financial investments. Economics is, however, mainly an academic, not a vocational subject. Its primary objective is to examine problems and decisions from a social rather than a personal point of view. It is not a series of “how to make money” examples.
Methods of Economics:

Some of the most important methods of economic analysis are as follows:
1. Deductive Method, and.
2. Inductive Method.
Economic generalizations describe the laws or statements of tendencies in various branches of economics such as production, consumption, exchange, and distribution of income. In the view of Robbins, economic generalizations or laws are statements of uniformities that describe human behavior in the allocation of scarce resources between alternative ends.

The generalizations of economics like the laws of other sciences, state cause and effect relationships between variables and describe those economic hypotheses which have been found consistent with facts or, in other words, are true by empirical evidence. But a distinction may draw between a generalization (law) and a theory.

A law or generalization just describes the relationship between variables; it does not provide any explanation of the described relation. On the other hand, a theory explains the stated relation between the variables, that is, it brings out the logical basis of the generalization. Economic theory or a model derives a generalization through the process of logical reasoning and explains the conditions under which the stated generalization will hold.

Deductive Method of Economics:

The deductive method is known as the analytical abstract a priori method. Here we start with certain formal data and assumptions. Then by logical reasoning, we arrive at certain conclusions. We start with undisputed fundamental facts and after adding some assumptions we build up a theory. For instance, it is assumed that businessmen aim at maximum profit. It follows from this that businessmen buy the materials in the cheapest market and sell them in the dearest market.

In the Deductive method of Economic Analysis, we proceed from the general to the particular. This is also known as a hypothetical method for some of the assumptions that may not correspond to facts, but very near facts which may use as the premise for starting, reasoning and drawing conclusions. In economics, we start with very simple premises and work up gradually or more and more complex hypotheses.

Inductive Method of Economics:

In this method, economists proceed from a practical angle to problems of science to reduce the gulf between theory and practice. Induction is done by two forms, viz. experimentation and statistical form. Facts are collecting first, arrange and conclusions are drawn. Then these general conclusions are further verified concerning facts.

The inductive method is generally associating with the statistical form of inductions. The statistical approach has a larger field in economic investigations than the method of experimentation. Further, the method of statistical induction is indispensable for the formulation of economic policy. Malthus presented his famous theory of population only after studying the facts of the population in various countries; He then used statistics to support his theory. Similarly, Engel, the German statistician employed the inductive method and used statistics to formulate his law of consumption.

The Inductive method can apply in two distinct ways:
1. The experimental method, and.
2. Statistical method.
Deductive or Inductive?

From the above discussion, we can infer that there is no point in pleading one method against the other. The two methods have to make use of or blended to achieve the required objective. The two methods, deductive and inductive, are not competitive, but complementary helping the investigator. Explain are Economics is a Science and Art?

Just, like any other matter, the issue, whether the deductive method is to refer to the inductive method or vice versa, became a raging controversy in the last century. The classical school of Britain represented by David Ricardo, Malthus, J.S.Mill, N.Senior, etc., strongly advocated deduction and affirmed their support in deductive methodology. On the contrary, the Historical School in Germany represented by Carl Knies, Roscher, Hildebrand, etc., affirmed faith in an inductive method. The controversy over methodology went on until Alfred Marshall brought about a compromise.

What are the Methods of Economics? #Pixabay.
March 24, 2018
Risk Management Definition!

Learned, Risk Management Definition!

Identifying, analyzing, evaluating, controlling, and eliminating, minimizing, or unacceptable risks. An organization could use risk management, risk retention, risk retention, risk transfer, or any other strategy (or combination of strategies) in proper management of future events. Also learn, Property Management, Risk Management Definition!

Risk–management is to identify, evaluate and prioritize risks, coordinate resources and follow through economical applications, minimize. The possibility or impact of unfortunate incidents, monitor, and control, or to maximize the realization of opportunities. The purpose of risk–management is to ensure uncertainty, not to remove the effort from business goals. Also learn, Project Management.

According to the definition of risk, the risk is likely to occur that an event will occur and adverse effects on the achievement of an object. Therefore, there is uncertainty in risk. Risk–management like COSO ERM, managers can better control their risk. Each company can have different internal control components. Which leads to different results. For example, the internal environment in the framework for ERM components, objective assessment, event identification, risk assessment, risk response, control actions, Information and communication, and surveillance.

Meaning of Risk Management!

In ideal risk–management, a prioritization process is as follows. The biggest disadvantage of which, and the greatest probability of being handles first, and with less chance of occurrence, risk, and less loss are in descending order. Also, in practice, the process of assessing overall risk can be difficult and balance resources. Which can be used to reduce risks with the high probability of events, but with a high risk of a risk vs low loss but the event The less likely can often misdirect

Risk management is also to face in allocating resources. It is the idea of the cost of the opportunity. Resources spent on risk–management can spend on more beneficial activities. Then, the ideal risk reduces management expenses and also reduces the negative effects of the risk.

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March 21, 2018
Essay on Project Management with Meaning and Definition

Project Management Essay: It is the practice of initiating, planning, executing, controlling, and closing a team’s work to achieve specific goals and to meet specific success criteria at specific times. A project is a temporary effort to bring a particularly beneficial change. This is to define a specific product, service, or result to meet unique goals, objectives, and objectives or the added value of the project is the opposite of the business as a general (or operation). Which is the product, Who does or repeated to produce services, permanent or semi-permanent functional activities? Also, in practice, the management of specific production approaches requires the development of specific technical skills and management strategies. Also learn Disk Management: Definition, Project Management Definition.

What is the essay on Project Management? with their Meaning and Definition.

What is a Project? A project is a temporary undertaking that exists to produce a defined result. Each project will agree and with its unique objectives, its own project planning, budget, time-limits, deliverables, and work. Also, in a project, people of different teams can include within an organization. Which are brought together to fulfill specific goals?

Meaning of Project Management:

Project management can define as the discipline of implementing, planning, executing, and managing specific processes and principles. That new initiatives or changes are being implemented within an organization. Project management is similar to normal activity for the management of the business. This is a continuous process, as it is to create new work packages to end with the consent or to achieve the goal.

As well as, The primary challenge of project management is to achieve all project goals within the given obstacles. This information is usually describing in the project documentation. Which is designing at the beginning of the development process. Also, Primary hurdles are scope, time, quality, and budget are the secondary and more ambitious challenge, to optimize the allocation of necessary inputs and implement them to meet pre-defined objectives. The purpose of the project management is to create a complete project which is in line with the client’s objectives. Also, in many cases, the purpose of project management to address the purpose of customer management is to either size or improve the short form of the client.

Essay on Project Management with Meaning and Definition; Image from Pixabay.

Definition of Project Management:

Project Management is the craft of dealing with all the parts of a project from commencement to conclusion utilizing a logical and organized approach. The term project might be utilized to characterize any undertaking that is impermanent in nature and with a start or an end. The project must make something exceptional whether it is an item, administration, or result, and should be dynamically explained. As the definition suggests, only one out of every odd assignment can view as a project. It is beneficial to remember this definition when arranging projects and examining their part in the accomplishment of the association. With the above meaning of the project, one gets away from what a project is.

Program Management characterizes as an office that concentrates the management of projects. This means the PMO or the Project Management Office is a vault of the apparent multitude of projects that execute in an association. Also, Program Management serves the CIO (Chief Information Officer) by furnishing the person in question with customary announcements in regards to the advancement of the apparent multitude of projects in the organization.

Project Manager:

The Project Manager’s job is to guarantee that the general destinations of the project accomplished with the cooperation of every individual part. The project administrator resembles the Prima Donna and their keenness relies upon how well the person in question can use the qualities of the individual individuals while limiting the effect of their shortcomings. Program chiefs take a similar view however at a lot more elevated level. Their activity is on the general main concern for the division or the organization; and, they drive the individual project supervisors. This is like that of a pyramid where the CIO or the program director sits on the peak; and, the project chief at the following level, the project leads further down, etc.

March 21, 2018
What is the Definition of Property Management? Explain

Property management Definition, Operating and managing of real estate, control, and inspection, which is used in its broadest terms. Management demonstrates the need to provide care, monitoring, and responsibility for its useful life and position. This is similar to the role of management in any business. Also learn, the Definition of Disk Management, Property Management!

Here is the article to Explain and Discuss, What is the Definition of Property Management?

The term used by real estate agents when they manage the leasing, maintaining, and advertising for a particular house or business. It can include finding tenants, collecting rent monies, and looking after maintenance such as gardening and small repairs. Real estate fragments can take place in the property– management, demand for tenants, the collection of monthly rent payments, retaining assets, and maintenance of the base.

All day-to-day activities are available to maintain and maintain the property The process of management. An apartment complex is controlled by some type of property management company. Property-management is also the management of private property, equipment, tooling, and physical capital assets. Which are using to create, repair, and maintain end items deliverable. Property–management involves the processes, systems, and manpower needed to manage. The life cycle of all acquiring property, including acquisition, control, accountability, responsibility, maintenance, use, and nature. Also, learn about Waste Management.

What is Property? Explain and Discuss.

Property that jointly belongs to more than one party may possess or control thereby in very similar or very distinct ways. Whether simply or complexly, whether equally or unequally. However, there is an expectation that each party’s will about the property clearly define and unconditional. To distinguish ownership and easement from rent. The parties might expect their wills to be unanimous, or alternately every given one of them. When no opportunity for or the possibility of the dispute with any other of them exists, may expect his, her, it’s or their own will to be sufficient and absolute.

Types of Property:

Most legal systems distinguish between different types of property, especially between land (immovable property, an estate in land, real estate, real property) and all other forms of property—goods and chattels, movable property, or personal property, including the value of legal tender if not the legal tender itself, as the manufacturer rather than the possessor might be the owner. They often distinguish between tangible and intangible property. One categorization scheme specifies three species of property: land, improvements (immovable man-made things), and personal property (movable man-made things).

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March 21, 2018
Case Study on Marketing Strategy of IBM!
Learn, Case Study on Marketing Strategy of IBM!

International Business Machines Corporation, better known as IBM, is a multinational IT company involved in the manufacture and retail of computer hardware and software applications, and IT consulting services. The company has established itself as one of the selected information technology companies since the 19th century. Adoption of marketing strategies for IBM has been a planned structure since the 19th century and by means of these strategies, it has earned enough success all over the world. With its growth in the manufacturing as well as marketing domains of computer hardware and software, it has gained the nickname of “Big Blue”. On marketing grounds, IBM follows strict infrastructural services, added by hosting provisions and consulting services in various areas from mainframe computers to the persuasion of nanotechnology. Also learn, Tata Motors Acquisition of Jaguar and Land Rover, Case Study on Marketing Strategy of IBM!

Well – devised and efficient marketing strategies have been the key to IBM’ global success. The company strongly believes that devising effective marketing strategies requires making appropriate decisions that can well enhance all kinds of competitive advantages and can create all kinds of new sources of value for the purpose of improving the organizational revenue growth. According to Luq Niazi, Leader of Strategy and Change at IBM, “when the leaders of an organization think about their business as components, it becomes clear which ones they need to own – and which they do not”. This clearly indicates the great emphasis that IBM places on the performance and decision-making capabilities of leaders in devising effective marketing strategies. In addition, the firm also considers understanding the requirements and needs of customers as crucial for developing effective marketing strategies. Understanding the innovative demands of customers lies at the core of developing effective marketing strategies.

Based on IBM’ market share and dominance in the IT industry, the firm can be aptly described as a ‘market leader’. Being a market leader, an important marketing strategy which IBM uses against its competitors is the defensive marketing warfare strategy. The defensive marketing strategy involves the firm employing tactics to maintain its market share. There are several tactics that firms use for defending their market shares, such as fortification, counterattack, mobile defense and strategic retreat. Being the courageous market leader that IBM is, the firm adopts the best defensive marketing strategy which is “self-attack”. IBM’ strategy is “cheaper and better than IBM”. Aware of IBM’ tactic, customers wait for IBM’ new prospects as they know that the Big Blue will constantly introduce new and better products which makes the firm’ own products obsolete. Another key marketing strategy employed by IBM for sustaining its market leadership is product differentiation strategies.

Product differentiation can be achieved using a variety of factors such as distinctive products, reliability, durability, product design etc. IBM uses a product differentiation strategy based on the quality of performance. In line with its quest for further growth and market leadership, the firm adopts a diversification strategy. The importance of IBM’ growth strategy has heightened in the current economic situation with companies in the computer industry had faced a massive drop in the industrial production and productivity of computer hardware and the future growth for this segment also appearing dim. In such a context, IBM has strategically reduced its exposure to hardware by diversifying into software and services.

IBM also realizes the importance of maintaining good relationships with its customers and in line the firm lays great emphasis on trust-based marketing strategies. Trust-based marketing strategies stress the need for organizations to gain ethical hold over consumer dealings and also be honest and open about its products and the services. For IBM, adoption of this strategy has been very effective in developing its brand identity and image. In all of its marketing activities, the firm strives at building customer trust and loyalty.

IBM and E-Business Strategies!

The motive of any electronic business is to efficiently meet consumer demands through internet networking. The internet provides a medium for businesses to reach out to customers globally at very low costs. It is an exclusive means adopted through the dealings related to information and communication technologies. In case of IBM, the role of e-business is very strong. Through e-business strategies, IBM is equipping itself with all kinds of external activities and is applying determined relationships for respective business dealings; with individuals, diversified groups and corporate clients. According to ‘Who Says Elephants Can’t Dance?’; a book by a former CEO of IBM, Louis Gerstner (2003), IBM’ approach for e-Business strategies is handled by specialized e-business teams operating under IBM’s marketing department.

It is through its e-business strategies that IBM is able to link it’s internal as well as external data processing systems with greater efficiency and flexibility. E-business helped IBM in reaching closer to its consumers, conveying the message of reliability and inurn enhancing customer loyalty to the brand. The proceedings led by IBM for the development and implementation of e-business concentrate on the diversified functions occurring through electronic capabilities. IBM is also a part of the entire value chain proceeding for more profitable dominance over the local as well as global market. There are some predominant sectors where the e-business strategies are applied to gain more trust and money from the consumer. These activities are noted below;
- Electronic purchasing.
- Supply chain management.
- Processing orders electronically.
- Handling customer service, and.
- Cooperating with business partners.
These proceedings add special technical standards in the e-business structure of IBM. The firm also utilizes e-business strategies to exchange of data between its partners and associate companies. As a matter of fact, the e-business strategies of IBM are not much different from the other marketing strategies. The basic difference, however, depends on the expansion of management for sending and receiving contracts from the consumer. Case Study on Corporate Governance for Satyam Scam!

It is under this strategic implementation that IBM has adopted many local dealers to be a part of its services. These dealers are of course selected through some professional modes. The reputations of these dealers are marked by IBM first before offering the partnership. In terms of services for each product sold through e-business, IBM provides appropriate training to all those people who are a part of this structure. With strategic planning, IBM is also in the dealings related to integrated intra and inter-firm business proceedings.

Importance and Use of Information in IBM Marketing Strategy!

The importance and use of information are vital to gaining success. In line, IBM adopted the strategy to take up Social Networking to the workplace. It is an absolute means of sharing ideas, complains and letters of appreciation in public. By means of adopting networking opportunities, IBM established its stronghold over competitive market. It is through the provision of Social Networking (SN), that IBM established its commitment to technology and developed an enterprise-wide SN mindset. IBM is the first major IT supplier that has got potential provisions for social networking and is in the process of changing the entire enterprise along with a credit application to address the market.

By means of investments made in the social networking domain, IBM has gained enough market strengths in the enterprise lineage, global services, deep pockets and above all in gaining loyal customers. By the success of social networking, IBM proved to be a fine player in the domain of information networking. The proceedings have added many advantages to its organizational global services. Social networking for enterprises have been implemented with enough marketing strategies and this is what is providing IBM with technical expertise in the field of organizational/adoption issues.

The launching of more facilities related to social networking is relevant to the competition of the market. The launcher came up with a new idea and launched it much before the thought had developed in anyone’ mind. The second big thing to the adoption of marketing strategy is the IBM’s mindset in the launching of Lotus Connection. It is an informal networking process with the collaboration-centric approach to social networking and helps in information sharing and uninterrupted workflow. By few minutes of exploration, anybody can well get hold over its functionalities. IBM kept it easy and user-friendly; the basics of marketing strategies. Google’s Acquisition of Motorola Mobility for Case Study!

When it comes to the use of information system in IBM, the adoption of unique kind of marketing strategies is predominant. The basic approach is in being innovative and adopting something that is very user-friendly and easy for the customer to adopt. Complicacies in the same field can lead to failure of the same. This is the reason that IBM lays emphasis on making it simple, easy and sharing more than the consumer can expect. Once there is a kind of trust and sense of being facilitated gets into the consumer, he hardly will opt for any other company and this is what IBM believes to the core. Application of innovative ideas in the field of information sharing units can be at great risk, but under the marketing strategy of IBM, this risk has been taken again and again with enough success.

Global Context in IBM Marketing Planning!

In the global context, IBM has proved itself as a strong contender by managing to sustain in the most difficult situations. It has overcome the twists and turns it initially faced in adjusting to the ‘bricks-and-clicks’ business structure. Overcoming all the hurdles IBM is now achieving milestones through the advantages forwarded by brick-and-click enterprises. It is through this enterprise structure that IBM has transformed into a major player in terms of getting hold over global marketing plans. Its formalizations are inclusive of creating a global brand blueprint. It is a mode that usually gets expressed locally and after attaining some success approaches on global grounds. IBM always follows the process of establishing the central framework and then architects the relevant consumer experiences to gain consistency with the brand.

IBM always concentrates on gaining the single view from its consumers and that helps in assessing the risk factors of global marketing strategies. In order to meet the diversified point of views, IBM follows the structure noted below;
- The process of analyzing the context of ‘when’, ‘where’ and ‘how’ the appropriate and relevant customer data can be collected. This is an approach that is done under the provision of the practical market survey.
- The means to create absolute governance framework with special attention led by management policies and overall practices. These are the sources that are collected through the purpose of encouraging customer centricity added by the scope to safeguard customer privacy.
- Approaches led by institute consistent processes for target customer is the next step. In this process, the relationship led by the management across all the domains of sales and provided services of the organization are scrutinized professionally.
- The process of appointing efficient team leaders and strong management initiators. IBM also appoints a leader who can perform as a single customer advocate and is very much accountable for all the sorted touch points.
The marketing strategies adopted by IBM to meet global demands and competitions are well inclusive of a robust infrastructure. It has the provision for optimizing flexibility and a hub-and-spoke architecture for collecting consumer demands on the global arena. There is also well-marked acknowledgment for all the innovative ways adopted by the partners of IBM. Developments attain by the partners of IBM in global terms is also directly related to the marketing strategies followed by IBM. IBM understands the fact that partners can add much hold over the local market and can reach the consumer with more in-depth formulations. This is the reason that they believe in developing the capitalized relationship with these partners for future opportunities.

Inference!

It can be well concluded that the marketing strategies adopted by IBM are very much structured on the basis of trust-based marketing strategies. It is through this theoretical approach that IBM has established itself very strongly, amidst burgeoning and very unpredictable online as well as the global marketplace. IBM concentrates on providing its consumer every possible facility that he demands and that too with very balanced services. It is more about having the trust of every single consumer, rather than having lots of them without the trust. The products and services provided by IBM can guarantee their utility to the customer’s satisfaction. In a nutshell, IBM has got professional and the courage to take a risk for innovative ideas. It explores the consumer’s domain through proper hold over the local and global proceedings.
March 20, 2018
Partnership: How Does it work in Business?
Explaining, What is Partnership? and learn, How Does it work in Business?

A partnership is an arrangement where parties, known as partners, agree to cooperate to advance their mutual interests. The partners in a partnership may be individuals, businesses, interest-based organizations, schools, governments or combinations. Organizations may partner to increase the likelihood of each achieving their mission and to amplify their reach. A partnership may result in issuing and holding equity or may only govern by a contract. Also learn, What are the Features of Sole Proprietorship? Partnership: How Does it work in Business?

History!

Partnerships have a long history, they were already in use in Medieval times in Europe and in the Middle East. In Europe, the partners contributed to the Commercial Revolution which started in the 13th century. In the 15th, century the cities member of the Hanseatic League would mutually strengthen each other; a ship from Hamburg to Danzig, would not only carry its own cargo but was also commissioned to transport freight for other members of the league. This practice not only saved time and money; but also constituted the first step toward partners. This capacity to join forces in reciprocal services became a distinctive feature, and a long-lasting success factor, of the Hanseatic team spirit.

Meaning!

A partnership is a formal arrangement in which two or more parties cooperate to manage and operate a business. Various partnership arrangements are possible: all partners might share liabilities and profits equally, or some partners may have limited liability. Not every partner is necessarily involving in the management and day-to-day operations of the venture. Such as in the case of a “silent partner.” In some jurisdictions, partners enjoy favorable tax treatment relative to corporations.

Definition!

“A type of business organization in which two or more individuals pool money, skills, and other resources, and share profit and loss in accordance with terms of the partnership agreement. In absence of such agreement, a partnership is assumed to exit where the participants in an enterprise agree to share the associated risks and rewards proportionately”.

How does it work in Business?

Business-partners is similar to a personal-partners. Both business and personal involve:
- Pooling money toward a common purpose.
- Sharing individual skills and resources, and.
- Sharing in the good and bad times.
A business-partners is a specific kind of legal relationship form by the agreement between two or more individuals to carry on a business as co-owners. Also, A business with multiple owners, each of whom has invested in the business. Some partners include individuals who work in the business. While other partnerships may include partners. Who has limit participation and also limited liability for the debts and lawsuits against the business?

As different from a corporation, is not a separate entity from the individual owners. The partner’s income tax is paid by the partners, but the profits and losses are divided among the partners, and paid by the partners, based on their agreement. As well as, a sole proprietorship, is a pass-through business, meaning that the profits and losses of the business pass through to the owners. Also learn, What is Leadership?

Thanks, Also, Photo Credit to pixabay.com/ More free Images!

Reference!

1. Meaning – //www.investopedia.com/terms/p/partnership.asp

2. Definition – //www.businessdictionary.com/definition/partnership.html

3. History – //en.wikipedia.org/wiki/Partnership

4. Work in Business – //www.thebalance.com/what-is-a-business-partnership-398402
March 19, 2018
What are the Features of Sole Proprietorship?

Sole proprietorship highlights or characteristics or Features; It refers to a business organization in which enterprises are controlled or owned by a single person. The sole proprietorship is the oldest form of business enterprise in India. It is the simplest form of business and all the risks or losses are bearer by a single person. Also, if he wants any help they can get it from their friends, family, or relatives. It doesn’t require any legal recognition or formalities and the simplest way to open a business. Also learn, Sole Proprietorship: the Advantages and Disadvantages!

Explaining, What are the highlights or characteristics or Features of Sole Proprietorship?

Also, A sole proprietorship is a business owned by a single individual. This sole owner is responsible for the entire business and is the sole recipient of the business’s earnings. Unlike other legal structures, the sole proprietorship requires less paperwork and is subject to few business restrictions and regulations.

15 best Features of Sole Proprietorship:

The main highlights or characteristics or features of the sole proprietorship form of business can list as follows:

One Man Ownership:

In the proprietorship, only one man is the owner of the enterprise.

No Separate Business Entity:

No distinction is made between the business concern and the proprietor. Both are the same.

No Separation between Ownership and Management:

In the proprietorship, management rests with the proprietor himself/herself. The proprietor is a manager also.

Unlimited Liability:

Unlimited liability means that in case the enterprise incurs losses, the private property of the proprietor can also utilize for meeting the business obligations to outside parties. As there is no division between the business and the business person, accordingly the individual risk of the entrepreneur is boundless. If the business can’t pay its obligations and liabilities, at that point, the entrepreneur is responsible for the equivalent and pay them. For example, the proprietor needs to pay the forthcoming sum either by selling their resources or property, a house, care, and others.

All Profits or Losses to the Proprietor:

Being the sole owner of the enterprise, the proprietor enjoys all the profits earned and bears the full brunt of all losses incurred by the enterprise.

A Less-Formalities:

A proprietorship business can start without completing many legal formalities. Some businesses too can start simply after obtaining the necessary manufacturing license and permits.

Personal Organization or Common Identity:

A sole traders’ concern has no separate legal entity independent of the owner. The owner and the business concern are the same. The owner owns everything the business owns and he owes everything the business owns.

Capital:

In the sole traders, the capital is employing by the owner himself from his personal resources. He may also borrow money from his friends and relatives if he cannot depend solely on his personal resources.

Profits and Losses:

The surplus arising in the business of the sole trader entirely belongs to him and similarly, all the business losses and risks are to be borne by him alone.

No Special Legislation:

Sole traders are not governing by any special legislation. A partnership firm is governing by the Partnership Act, a joint-stock company is governing by the Companies Act, and a co-operative society by the Co-operative Societies Act. Any person who is competent to contract can start his business as a sole trader. However, he is subject to the common law, the law of contract, and the law of insolvency.

The concept of Unlimited Liability. As well as, the liability of a shareholder or member of a company or a co-operative society limits to the extent of the face value of the shares held by him. For example, if Mr. X subscribes to 100 shares of Rs. 10 each, his total liability is unto Rs. 1,000 only. If he has already paid Rs.5 per share, his liability will restrict to the unpaid portion of his shares, i.e., Rs. 500 only. Thus, there is a limit to the extent of liability of the shareholder of a company.

Thanks, Also, Photo Credit to pixabay.com/ More free Images!

No Legal Formalities:

There is no different law-related with a sole proprietorship to oversee it and accordingly, there is no presence of any arrangement of extraordinary standards just as guidelines to follow. Also, best of all, it doesn’t require either any enrollment or consolidation of any sort. Much of the time, we require just the permit to fire up the ideal business. Like that of the beginning, there are no legitimate tasks joined to the end methods. Along these lines, it gives effortlessness to start a business and do it with less issue.

Danger and Profit:

The proprietor of this business is the danger carrier in a sole exclusive. Since the business person is the main individual who put resources into the business monetarily, so all dangers have a place with him in particular. Regardless of whether the business fizzles or develops, the proprietor is the individual who gets influenced by the equivalent. Actually, he additionally appreciates all benefits acquired from the business. There is no compelling reason to separate and offer benefits with partners as there is no presence. Consequently, he bears all dangers and acquires benefits as well.

No different legitimate character:

In legitimate terms, the business and the proprietor are not treated independently as both are the one and same thing. No different legitimate element has a place with a sole owner and the proprietor is entirely and solely answerable for all business exercises and exchanges.

Progression:

As we as a whole realize that the business and the proprietor have a similar character. In this way, a sole proprietorship has altogether depended on the entrepreneur. A few variables influence a sole proprietorship, for example, retirement, craziness, demise, and detainment. In such a circumstance, the sole proprietorship puts to an end.

Control:

As all the business activities and duties lie with the sole owner, so he controls all the business solely. No other individual can participate in business exercises and the proprietor can alter or grow the business according to their solace and plans.

These are altogether highlights or characteristics or features of a sole proprietorship that will clarify what precisely the business structure and how it runs. Let us take a look at the upsides of selecting a sole proprietorship that we will write down underneath.

March 19, 2018
What are Disadvantages of Sole Proprietorship?
Sole Proprietorship Disadvantages and Limitations; A sole proprietorship is the simplest and most common legal structure someone can choose. It’s an unincorporated business owned and run by one individual in which there is no distinction between the business and the owner. If you own a sole proprietorship, you are entitled to all profits and are responsible for all your business’s debts, losses, and liabilities. Also learn, How to Explain, What is Sole Proprietorship?

Learn and Study, What are the Limitations or Disadvantages of Sole Proprietorship? Explaining are, Easy Point, Trade, Multipoint!

In other words, the owner remains personally liable for any losses or debts that the sole proprietorship incurs. They can also, held legally responsible for violations committed by the business or its employees. A sole proprietorship can best sum up by the phrase, “You are the business”. Also learned, What are the Advantages of Sole Proprietorship?

Easy of the Limitations or Disadvantages of Sole Proprietorships:

Forming a sole proprietorship does involve some risks, mainly to the owner of the business, as legally speaking they are not treating separately from the business. Some limitations or disadvantages of sole proprietorships are:

Liability:

The business owner will hold directly responsible for any losses, debts, or violations coming from the business. For example, if the business must pay any debts, these will satisfy the owner’s own personal funds. The owner could sue for any unlawful acts committed by the employees. This is drastically different from corporations, wherein the members enjoy limited liability (i.e., they cannot hold liable for losses or violations)

Taxes:

While there are many tax benefits to sole proprietorships, the main drawback is that the owner must pay self-employment taxes. Also, some tax benefits may not be deductible, such as health insurance premiums for employees

Lack of “continuity”:

The business does not continue if the owner becomes decreasing or incapacitating since they are treating the same. Upon the owner’s death, the business is liquidating and becomes part of the owner’s personal estate, to distribute to beneficiaries. This can result in heavy tax consequences on beneficiaries due to inheritance taxes and estate taxes

Difficulty in raising capital:

Since the initial funds are usually providing by the owner, it can be difficult to generate capital. Sole proprietorships do not issue stocks or other money-generating investments like corporations do

So, while sole proprietorships do not necessarily create more liabilities, they do expose the business owner to a risk of being sue. Lawsuits can file against the business owner for legal violations, as well as to collect any outstanding debts.

Business; Proprietorship form of ownership suffers from some disadvantages or limitations also.

The important ones are:

1. Limited Resources:

A proprietor has limited resources at his/her command. The proprietor mainly relies on his/her funds and savings and, to a limited extent, borrowings from relatives and friends. Thus, the scope for raising funds is highly limited in proprietorship. This, in turn, deters the expansion and development of an enterprise.

2. Limited Ability:

The proprietorship is characterized as the one-man show. One man may be an expert in one or two areas, but not in all areas like production, finance, marketing, personnel, etc. Then, due to the lack of adequate and relevant knowledge, the decisions take him imbalanced.

3. Unlimited Liability:

The proprietorship is characterized by unlimited liability also. It means that in case of loss, the private property of the proprietor will also use to clear the business obligations. Hence, the proprietor avoids taking the risk.

4. Limited Life of Enterprise Form:

The life of a proprietary enterprise depends solely upon the life of the proprietor. When he dies or becomes insolvent or insane or permanently incapacitated, there is every likelihood of closure of enterprise. Say, the enterprise also dies with its proprietor. The Steps of Manpower Planning with Features!

Disadvantages of sole trading include that:
- You have unlimited liability for debts as there’s no legal distinction between private and business assets.
- Your capacity to raise capital is limited.
- All the responsibility for making day-to-day business decisions is yours.
- Retaining high-caliber employees can be difficult.
- It can be hard to take holidays.
- You’re tax as a single person, and.
- The life of the business is limited.
7 best Limitations or Disadvantages of Sole Proprietorship:

The following limitations and disadvantages below are;

(i) Limited Resources:

The resources of a sole proprietor are limited. He makes investments from his family source only. There is a limit to which a single person can invest. He tries to raise finances from financial institutions also. These institutions want securities for their loans. The sole trader cannot offer much security, so he does not get much help from financial institutions. The capacity for expanding business operations is limited for want of resources, even when there is a scope for expansion. Other forms of ownership are better than the sole proprietor for raising financial resources.

(ii) Limited Managerial Ability:

One person may not be an expert in every function of the business. He will not be able to devote sufficient time to all types of activities. He will have to depend on paid employees. The employees may not take as much interest as the owner himself can take. What is the Process of Manpower Planning?

The managing capacity of the proprietor is limited. In the present competitive world, the complexities of managerial jobs are increasing every day. The sole proprietor may not be able to use the services of experts for want of resources. So one person will not be able to survive effectively. On the other hand, his limited resources will not allow him to use the services of professional people. Limited managerial capacity will hinder the growth of the business.

(iii) Unlimited Liability:

The liability of a sole proprietor is limited. His private property can also assign to meeting business obligations. A loss of business may deprive him of his private assets also. Unlimited liability also restricts his work. He tries to be cautious in taking the risk. It acts as a detriment to the growth of business activities.

(iv) Uncertain Continuity:

The business continues as far as the sole proprietor is there. In case of his mobility or death, the business is discontinuing. The successors of the sole proprietor may not have an aptitude or ability to continue in the business. The closure of a business will cause inconvenience to the consumers. It will also result in social loss.

(v) Limited Scope for Employees:

A sole trader cannot attract trained and qualified persons for reasons of limited career opportunities. Moreover, the continuity of sole trade business being uncertain the employees also remain under psychological pressure. A sole proprietor cannot offer financial incentives to employees because his activities are on a small scale. The employees will try to join good concerns whenever an opportunity arises.

(vi) No Large-Scale Economies:

A small-scale concern cannot economize in the purchase, production, and marketing. A large-scale enterprise will be able to have favorable terms for purchasing and selling of goods. In a sole trade concern, overhead expenses are also more. So this type of concern cannot enjoy the benefits of large-scale economies.

(vii) More Risk Involved:

A sole proprietor is to take all decisions by himself. So there is a possibility of taking wrong decisions. In other forms of organization, the decisions are taking by more than one person. So the possibility of mistakes and wrong decisions is minimizing. Lack of counseling may create difficult situations.

Photo Credit to pixabay.com/ More free Images!

Reference!

1. Easy and business Points – //www.legalmatch.com/law-library/article/advantages-and-disadvantages-of-sole-proprietorships.html and //www.yourarticlelibrary.com/sole-proprietorship/sole-proprietorship-features-advantages-and-disadvantages/40806

2. Trade Points – //www.business.tas.gov.au/starting-a-business/choosing-a-business-structure-intro/sole-proprietorship-advantages-and-disadvantages

3. Main/Multipoint – //www.yourarticlelibrary.com/business/advantages-and-disadvantages-of-sole-proprietorship/42037
March 18, 2018
What are Advantages of Sole Proprietorship?
Sole Proprietorship Advantages; Proprietorship (also called sole trade organization) is the oldest form of business ownership in India. In a proprietorship, the enterprise is owned and controlled by one person. He is the master of his show, he shows, reaps, and harvests the output of this effort, he manages the business on his own. If necessary, he may take the help of his family members, relatives, and employ some employees. Also learn, How to Explain, What is Sole Proprietorship?

Learn and Study, What are the Advantages of Sole Proprietorship? Explaining are, Easy Point, Trade, Multipoint!

The sole proprietorship is the simplest and easiest to form. It does not require legal recognition and attendant formalities. This form is the most popular in India due to the distinct advantages it offers. William R. Basset opines that “The one-man control is the best in the world if that man is big enough to manage everything”. Also learned, Corporate Entrepreneurship Categories, and Organizational Thinking.

Some of the Easy Advantages of Sole Proprietorship:

There are many reasons why a person would choose to start their business up using a sole proprietorship structure. Some of the main advantages of sole proprietorships include:

Ease of formation:

Starting a sole proprietorship is much less complicated than starting a formal corporation, and also much cheaper. Some states allow sole proprietorships to form without the double taxation standards applicable to most corporations. As well as, the proprietorship can name after the owner, or a fictitious name can be used to enhance the business’ marketing.

Tax breaks:

The proprietor of a sole proprietorship isn’t needed to record a different business charge report. All things considered, they will list business data and figures on their individual assessment form. This can spare extra expenses on bookkeeping and assessment recording. As well as, the business will charge at the rates apply to individual pay, not corporate assessment rates.

Employment:

Sole proprietorships can enlist representatives. This can prompt a considerable lot of the advantages related to work creation, for example, tax cuts. Likewise, companions of the entrepreneur can utilize without being officially proclaimed as a worker. Hitched couples can likewise begin a sole proprietorship, however, the obligation can just accept by one person.

Decision making:

Authority over all business choices stays in the possession of the proprietor. Also, the proprietor can likewise completely move the sole proprietorship whenever as they esteem important.

Some Advantages that proprietorship form of business offers are as follows;

1. Simple Form of Organization:

The proprietorship is the simplest form of organization. The entrepreneur can start his/her enterprise after obtaining licenses and permits. There is no need to go through the legal formalities. For starting a small enterprise, no formal registration is statutorily needed.

2. Owner’s Freedom to Make Decisions:

The owner, i.e. the proprietor is free to make all decisions and reap all the fruits of his labor. There is no other person who can interfere or weigh him down. Why is Intrapreneurship Better than Entrepreneurship?

3. High Secrecy:

Secrecy is another major advantage offered by proprietorship. This is because the whole business is handled by the proprietor himself and, as such, the business secrets are known to him only.

Added to it, the proprietor is not bound to reveal or publish his accounts. In the present-day business atmosphere, the less a competitor knows about one’s business, the better off one is. What the competitors can make is guesstimates only.

4. Tax Advantage:

As compared to other forms of ownership, the proprietorship form of ownership enjoys certain tax advantages. For example, a proprietor’s income is taxed only once while corporate income is, at occasions taxed twice, say, double taxation.

5. Easy Dissolution:

In the proprietorship business, the entrepreneur is all in all. As there are no co-owners or partners, therefore, there is no scope for the difference of opinion in the case the proprietor/entrepreneur-wants to dissolve the business. It is due to the easy formation and dissolution, the proprietorship is often used to test the business ideas.

Advantages of sole trading include that:
- You’re the boss.
- You keep all the profits.
- Start-up costs are low.
- You have maximum privacy.
- Establishing and operating your business is simple.
- It’s easy to change your legal structure later if circumstances change, and.
- You can easily wind up your business. Also learned, What are the Disadvantages of Sole Proprietorship?
14 best Multipoint Advantages of Sole Proprietorship:

The following multipoint advantages below are step by step;

(i) Easy in Formation:

The sole proprietorship is the only form of organization where no legal formalities are requiring to perform. Also, Anybody wishing to start a sole trade concern can do so without loss of time. This business is absolutely free from legal formalities. On the other hand, if a joint-stock company is to form it needs the services of experts to get it incorporate, and it involves a lot of labor and money.

(ii) Better Control:

In this form of organization one man is responsible for all types of activities. He controls all functions of the business. He himself takes decisions at the appropriate time. The authority and responsibility lie with one man. He cannot afford to be complacent in taking decisions. If the responsibility is divided, then there can a possibility of shifting obligation to other persons (Everybody’s responsibility becomes nobody’s responsibility). Insole trade business, there is no such difficulty. As well as, the owner is all in all and he cannot escape his work. The business is controlled effectively.

(iii) Flexibility in operations:

A sole proprietorship concern is generally run on a small scale basis. In case a change in operation is requiring, it can be possible without involving much expenditure. Even if a new line of products is to take up, it will not involve many efforts. On the other hand, if the operations are on a large scale, then it becomes difficult to change the method of production.

A small-scale concern can adjust its production according to the changing demand pattern. It can increase and decrease its products as per requirements. Moreover, no legal formalities are requiring for making changes in operations. As well as, a joint-stock company cannot go beyond its objective clause. Because of being flexible in operations, a sole trade concern is most suitable for industries dealing with fashionable and seasonal goods.

(iv) Retention of Business Secrets:

A sole trader maintains business secrets. Being the sole proprietor, he is not expected to share his trade secret with anybody else. As well as, He is not expected to publish his accounts. He can maintain secrecy from his competitors. Secrecy is very important for small-scale concerns.

(v) Easy to Raise Finance:

An individual entrepreneur can create goodwill for his business. This helps him to establish his creditworthiness in the market. Secondly, the liability in a sole trade organization being unlimited, the creditors can have a claim over the private property of the owner. As well as, the creditors feel secure in extending credit to individual proprietors. Moreover, they try to repay the loans as quickly as possible so that they do not lose goodwill in the market. Once a sole trader loses his creditworthiness, he will not be able to get much help from the market.

(vi) Direct Motivation:

The proprietor takes a keen interest in the working of the business. He tries to put heart and soul into the business to earn as many profits as he can. There is a direct relationship between efforts and rewards. In other forms of organization, the profits are shared by more than one person. So everybody may not put in his best efforts.

(vii) Promptness in Decision Making:

All important decisions are taking by one person. He can take prompt decisions. He will not let an opportunity slip away. If more than one person is involving in decision making then delay is bound to occur.

(viii) Direct Accessibility to Consumers:

In insole proprietorship the scale of operations is small. The owner can have direct contact with customers and employees. He can know the relations and preferences of consumers. It enables him to make necessary changes in the quality and design of his products. It will help him to boost his sales. He can also emphasize consumer service.

(ix) Inexpensive Management:

The sole trader is the owner, manager, and controller of the business. He does not appoint specialists for various functions, he personally supervises various activities and can avoid wastage in the business, he does not create managerial paraphernalia. In this way, managerial costs are saving to a large extent.

(x) No Legal Restrictions:

There are no legal requirements for starting a business. No special acts are governing the work of a sole proprietor. As well as, the proprietor is not requiring to submit the results of his business to any authority. There is no restriction in changing the nature of the business. Even the dissolution of the business can easily undertake. The tax liability on a sole trader is also low. He is a tax as an individual and not as a business unit.

(xi) Socially Desirable:

One man business is generally on a small scale basis. Large numbers of sole traders have entered all types of business. It helps in avoiding the concentration of wealth. Large-scale business leads to wealth accumulation in a few hands. Also, the Sole trader business provides competition for other businesses. The consumers will not be dependent upon big business houses. So, the sole trade business is socially desirable.

(xii) Self-Employment:

The sole proprietorship form of organization offers the means of self-employment to those who do not want to serve others. As everyone cannot get a suitable job to earn his livelihood in a developing country, the individuals can easily start a small-sized business unit as a sole trader.

(xiii) Healthy Relations with Employees:

A sole trader is in a position to maintain direct relations with his employees. This enables the employer and the employees to understand and appreciate the difficulties of each other. Moreover, a sole trader can quickly solve the grievances of his employees. This results in healthy relations between employers and employees which is of vital importance to the success of the business.

(xiv) The benefit of Inherited Goodwill:

A sole trader passes on the business goodwill to his successor. Technically a sole trade business is dissolving on the death of the owner but in reality, the same business is continuing by an heir. Also, the goodwill which one person earns during his lifetime is passing on to those who continue that business.

Photo Credit to pixabay.com/ More free Images!

Reference!

1. Easy and business Points – //www.legalmatch.com/law-library/article/advantages-and-disadvantages-of-sole-proprietorships.html and //www.yourarticlelibrary.com/sole-proprietorship/sole-proprietorship-features-advantages-and-disadvantages/40806
2. Trade Points – //www.business.tas.gov.au/starting-a-business/choosing-a-business-structure-intro/sole-proprietorship-advantages-and-disadvantages
3. Main/Multipoint – //www.yourarticlelibrary.com/business/advantages-and-disadvantages-of-sole-proprietorship/42037
March 18, 2018