Topics covered: Business sectors and stakeholders.
• Meaning.
• Unlimited liability.
• Tertiary sector.
• Internal and external stakeholders
Komal was a milk dealer who used to supply milk and dairy products to local residents on a regular basis. He used to carry on his two-wheeler and distribute to local residents.
Ever since he started his parttime self-business, he found that demand is growing for dairy and bakery products. He was in deep discussion with his friend who owns a small bakery.
He had a dream to become self-made millionaire and this is the time to grab the opportunity and deal with the challenges.
He has decided to open a small bakery shop to meet the growing demand. He used his own savings and borrowed from his friend too. Though he is aware of the financial risk, his confidence and clarity in his business idea made him go ahead. Komal worked long hours with his family members.
Though there were difficulties during its initial days, Komal made a significant progress and now it is one of popular shops in the locality.
Encouraged with the success of his business idea, Komal is planning to hire two employees to work in the bakery and two delivery boys to expand his business operations.
Questions:
a) With reference to KMS, explain the term ‘unlimited liability’ [2 marks]
b) Identify and explain two reasons why Komal started his own business. [4 marks]
c) Identify and explain two problems Komal’s business might have experienced during the set-up stage. [4 marks]
