Commercial Applications
Meera runs a bakery. Due to a drop in demand for cakes, she starts focusing on cookies and bread. She quickly adapts her business to market trends without needing approvals. Which merit of sole proprietorship does this demonstrate?
- Unlimited liability
- Secrecy of operations
- Flexibility of operations
- Lack of continuity
Sole Proprietorship
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Answer
Flexibility of operations
Reason — Meera is able to adapt her business to changing market trends quickly because in sole proprietorship, the proprietor enjoys complete freedom of action and can take quick decisions without consulting anyone. This flexibility allows her to shift focus from cakes to cookies and bread without delay, which is a key merit of sole proprietorship.
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