What form of business enterprise would you recommend for a tailor? Give reasons for your answer.

Assessment: WAEC SSCE - Economics - 2000 (Essay) Subject: Economics

Question 1 Report

What form of business enterprise would you recommend for a tailor? Give reasons for your answer.
 

Answer Details

Recommendation: a tailor should operate as a sole proprietorship (one-man business).

Reasons.

  • Small capital required: tailoring needs only a sewing machine, tools and a small workshop, which one person can finance.
  • Easy to establish: there are few legal formalities, so the business can start quickly.
  • Direct personal service: the tailor deals face to face with customers and can meet their individual tastes and measurements.
  • Quick decision-making: the owner is the sole decision-maker and can respond promptly to customers' needs.
  • The owner enjoys all the profit: there is no sharing of profit with partners or shareholders.
  • Ease of management and flexibility: the business is small and simple to control, and the owner can easily change designs or working hours.

Because tailoring is a small-scale, skill-based, personal service, the one-man business suits it better than a partnership or company.

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