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It is worthwhile to mention that Katy has a relatively better idea to initiate her personal furniture business as she could invest a considerable amount of 250,000 pounds. Indeed, commencing one’s own business is more feasible than investing this money in financial markets by purchasing bonds, stocks, saving certificates etc. Indeed, the reason behind this is the fact that today’s corporate world is highly unstable that in turn affects the financial markets. Secondly, low interest rates has also reduced the yield on financial products, hence income generated in above mentioned products may not be up to one’s expectations. As far as furniture business is concerned, it should be highlighted that people tend to purchase furniture (including dining tables, bedroom sets, cupboards, chairs, book shelves etc) for their households. therefore, the demand for furniture products is relatively inelastic and will exist because it is a human need. However, the purchasing power of a customer could affect the demand of designed and branded furniture products. In more simple words, Katy who is adept in designing and marketing should opt to commence her own business in the light of following costs and benefits analysis of each available business option including Sole Proprietorship, Partnership, Limited liability partnership and Company formation. Katy could definitely make a rational business decision after reviewing the mentioned recommendations.

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