Mr. Rohit is into transport business. His buses are hired by schools for transportation of students. He is willing to expand and diversify his business to inter-state transportation purposes. Enumerate any six factors that will affect his fixed capital requirements.

Pranav is engage in transport business. Identify the working capital requirements of Pranav stating the reason in support of your answer. Pranav wants to expand and diversify his transport business. Explain any two factors that will affect his fixed capital requirements.

Rizul Bhattacharya after leaving his job wanted to start a Private Limited Company wiht his son. His son was keen that the company may start manufacturing of Mobile-phones with some unique featurs. Rizal Bhattacharya felt that the mobile-phones are prone to quick obsolencence and a heavy fixed capital investment would be required regularly in this business.Therefore, he convinced his son to start a furniture business. Identify the factor affecting fixed capital requirements which made Rizul Bhattacharya to choose furniture business over mobile -phones.

Mr Shaunit started a transportation business on a small scale. In a span of five years, his company progressed and earned a good amount of profit. Due to this, he decided to expand his business. After expansion, he faced problems in various departments due to all decisions taken by him. (i) What is the main problem in this case? (ii) How would you convince Mr Shaunit to opt for delegation of authority? (iii) While expanding his business, explain two factors that he would consider before investing in fixed assets.

Shonali Sharma, after completing her MBA , began to help her father , Mr. Shiv Sharma , in his business . The business had a limited capital investment . Shonali wanted to use the modern business techiques in every area of business , namely , purchase , sales , production , finance etc . In fact , she wanted to implement the methods , which she had learnt in her MBA course , in her father's business . As soon as she started adopting the latest techniques , the workers began to protest and resist the changes . So she became disappointed and left her father's business . She started working in an MNC. Mr. Shiv Sharma was unable to assume the responsibilty of all managerial tasks such as purchasing , selling , financing , etc . Good workers started leaving the organisation . The goodwill of the business in the market went on declining .In no time , the liabilities of the business became many times more than the assets . On account of the pressure exerted on him by teh creditors , Mr. Shiv Sharma had to repay the debts of the business by disposing off his personal properties . (a) Identify the form of business organisation discussed in the above para . (b) Quoting the relevant lines from the para explain any three limitations of the form of business organisation identified in (a) .