A monopoly is where you can set prices almost everywhere you want, and there is no other competition. This is referred to as predatory pricing, where companies charge a price lower than production costs. These companies believe their competitors can’t afford the loses. Cable companies don’t worry about competition due to the protection they enjoy from the government. The cable companies get away with this by claiming they do not have competition, cities award them the contract by providing coverage, even though they may not have the lowest price.
The sole proprietor has the advantage of maintaining complete control over his or her business. Disadvantages: One of the greatest disadvantages to a sole proprietorship is the lack of cash flow or access to capital like loans or investors. They do not have the advantage of getting access to capital through bonds or shares and credit is based on their personal credit history. The lack of capital keeps purchase power restricted in comparison to corporations. Liabilities can be very heavy for sole proprietors depending on the nature of the business.
A sole proprietorship is an unincorporated business owned by one person. The owner of a sole proprietorship is known as a sole proprietor. Sole proprietorship is easier and less expensive to start than corporations. It can be started without anything more formal than a decision or a handshake and you can conduct business under your own name or under a trade name. In this example, Owen will be the only owner and since he wants to have employees under this business form he is allowed to hire employees whereas if he was thinking of an S- Corporation he could not have any employees.
All companies cannot dictate the price of the products. Imperfect Competition also known as Monopolistic/Competitive market is the complete opposite of Perfect Competition. Imperfect Competition means that all companies have the power to dictate prices of product and all companies are able to join the same business if the revenue is up. Oligopoly is when a small group of companies control a specific market. Monopoly is where only one company is providing a good and or service.
The owner does not need to register his or her name and get a local license in order to do business, unless it is under a fictitious name. A sole proprietorship has the most freedom out of all the business types. Often times the owner will take checks in his or her name and possibly even comingle
Another reason people like to defend Wal-Mart is because they have better prices than most everyone else which is easier on peoples wallets. Wal-Mart has become such a household name that most people will shop there without checking out other business when they realistically could be spending a little extra pocket change and helping their economy and help control this giant corporation. The savings people get are on account of cheap foreign goods that aren’t as good as American goods and people don’t realize it because they just remember the good deals. In my opinion there aren’t any other reasons to defend
There may be other similar businesses, but in the case of a monopoly, there is only one business or individual that can provide a specific product or service. An oligopoly is where the product or the service may be available from more than one vendor, but only a few big merchants are in control of the market. This makes it hard for new competition to try to enter the field. Industrial regulations suppress monopolies and oligopolies from price fixing. The regulations make competition a necessity which in turn keeps the prices to consumers more affordable and competitive.
The disadvantage of this would be the lack of additional input from other shareholders could help in expanding or continuing the business. • Profit Retention- Any earnings made as a sole proprietorship is retained by the owner. The owner can determine how much to retain in the business funds and how much to take as personal use. • Convenience- A sole proprietorship is very simple to start.
The biggest difference is cost. The search for a natural chemical often requires a company to go to great lengths to obtain it, even though the exact same compound can be produced in a lab much cheaper. In the end, consumers end up paying more for a “natural” flavor even though there is no difference in the taste or the relative safeness of the “artificial” flavorings. The flavoring companies take great pride in keeping their secrets and employers closely guarded. And since they aren’t required to display the contents of what is in their flavorings, many consumers don’t know what it is
No jobs equal no dreams to build In my opinion there are far too many immigrants that already occupy all areas of our industrial and mercantile business. What this does is limit the amount of hometown jobs for hometown people. One classic example is it is cheaper to pay an immigrant less per hour to pick produce than it is to pay a hometown individual that is associated with a union. I am not saying pay is a huge factor it is only one facet of the whole diamond. There are jobs such as picking produce that no hometown native would want to do because it is too dirty for them to perform so these jobs become appealing for the searching immigrant.