* Control: Because there is only a single owner, a sole proprietor has control of all aspects of the business. The owner makes all of the decisions in how the business is to operate. * Profit retention: A sole proprietor keeps all profits of the business and does not have to share them with another individual. If the sole proprietor employs others, then it is the responsibility of the owner to pay the employees. * Location (expansion): Relocating to another state for a sole proprietorship is simple.
Lastly organizations must all seek the greatest profits meaning nothing else but profits. When these conditions are meet which isn’t often, organizations can supply goods following their own self-interests in a predictable manner to the market. Suppliers utilize the demand curve to determine the amount of productivity and the right cost for the market. The requirement that all the firms are large ensures no organizations will be able to gain more than another. These types of conditions keep firms from monopolizing the market.
All partners normally have an equal say in all business decisions. This can be modified as a condition of the initial negotiation to do business together. All profits are generally distributed equally among the partners. Business is generally conducted in close proximity to the location of the business. Expansion can only be approved by a majority decision by all partners.
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.
Murphy describes Capitalism “as a system in which people are free to use their private property without outside interference” (Murphy, p. 1). It is also known to be referred to as a “free market” simply because it gives people the option to make their own decisions. This idea can be summed up in the phrase “laissez-faire”. The idea is that society contains within itself the capacity for ordering and managing its own path of development. “It follows that people should enjoy the liberty to manage their own lives, associate as they please, exchange with anyone and everyone, own and accumulate property and otherwise be creative by state expansion into their lives” (Tucker, n.p.).
Running head: Business Law Rachel Lavender Western Governors University 2/21/11 PART A Sole Proprietorship A sole proprietorship is how most business entities begin. This type of business is owned and operated by one person. The main advantage of this type of business is that the owner does not need to get the approval of a partner or board in order to make decisions. A significant disadvantage is that, in a sole proprietorship, there is no separation from the business and personal assets, therefore, there is unlimited personal liability to the owner’s personal assets. · Liability-There is no difference between personal and business assets.
There are many strength qualities at KFF. The lack of competition and various selection choices for customers, the strategic locations give the business opportunities for growth. Incorporating good ideas along with experience food and manager experts will enable KFF to change their weakness and potential threats. Designing a sound technology foundation is needed in order of reducing all weakness issues. This will allow the team to manage all responsibilities, which gives Kudler no authority of making costly decision.
The advantages to a sole proprietorship are, there is no startup cost, and you just simply start collecting money for exchange of services or goods. You set your own hours. You decide how much or how little you work. You also decide what contracts to enter. Disadvantages of a sole proprietorships are, you can’t transfer or sell the business.
In perfect competition, there are many sellers and individual buyers, there is also perfect freedom of entry and exit from the industry, with firms supplying homogenous products that can be perfect substitutes of each other. There is also perfect knowledge and consumers have all information about prices and products. Contestability is the idea that firms have the freedom of entry into an industry and the costs of exit are low and hence such a market is likely to have potential new suppliers which bring competition to the market. For a market to be contestable, there must be an absence of sunk costs (ie. costs that have been committed by a business and cannot be recovered once a firm has entered the industry), access to technology, low consumer
Which of the following is a distinctive feature of the U.S. system compared with other countries? • All agreements are of unlimited duration • Low union dues and small union staffs • Exclusive representation • Wages set by arbitration councils 6._____ implies that appraisal systems are easy for managers and employees to understand and use. • Reliability • Sensitivity • Acceptability • Practicality Download now HRM 531 Final Exam 7._____ analysis is the level of analysis that focuses on employees specifically. • Environmental • Individual • Employee • Operations 8. What can affirmative action assist organizations in achieving that diversity initiatives cannot?