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.
Personal saving will benefit the businesses within the long term run as it will allow the owner it not rely on loans and interest from banks and friends. This will also allow the business to not be in debt from other external sources of finance such as banks, friends and family. An advantage of personal saving is that it is unlimited, this means that the more money you have the more you can spend to improve the business. Another advantage is that there is no interest so this means that you don’t have to pay back anything or be in debt. Finally the benefit of personal savings is that you are in control of where your money goes and how it is spent.
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.
* What are the legal requirements? * Didn’t break any laws, related to him applying company funds towards personal use even though his act was solely beneficial to himself alone. What are the ethical duties? * Maintain price-competitive markets will ensure that scares resources are used to optimally satisfy consumer needs. * Pareto Optimality wasn’t obtained because maximum benefits of most wanted goods and services produced at minimum cost of least wanted resources.
“Members of the free market society generally still cherish the hope that free markets will create universal well being.” In respect to them we ignore the connections to addiction, free markets and dislocation. Finally Alexander and Shaler argue that the spread of alcoholism is not a result of a “criminal” or “medical” problem but is “but is primarily a political and spiritual problem.” Changing our arguments on addiction is essential for political action to occur. “The key to controlling addiction is maintaining a society in
In this scenario the pro’s outweigh the con’s and therefore it would be a great idea to form a corporation. Choosing the proper formation to conduct business is crucial for an organization. Whether one believes that personal liability, limited liability, or double taxation will increase their chances of surviving in the business world each organization has the ability to choose a specific formation. Formations of a business are unique, some benefit some organizations more than others and so forth. However, in most cases if circumstances
One, here in the United States we are provided with freedoms including life, liberty, and the pursuit of happiness. Two, content that is deemed politically incorrect now was at one time accepted, so in order to accurately document history this content must also be observed in books. Three, with a free-market economy, books that are inappropriate, or deemed bad, will not sell and will therefore not be a problem after some time. One of the many advantages of citizenship in the United States is our freedoms. These freedoms, which include life liberty and the pursuit of happiness, prevent us from being unfairly limited in our potential for happiness and success.
Public interest groups are probably the most selfless groups since they do not really focus on achieving goals that affect their members alone. Examples could be civil rights and liberties groups. Economic interest groups are basically involved in promoting the economic interests of members within their groups. Unlike public groups, economic groups tend to focus only on their members; whether it is to make profits for themselves or to obtain economic benefits. As stated in the first paragraph, public action committees are legally authorized groups with the main purpose of raising funds for contributing in a few ways such as campaigning or to political parties.
It is a good source of freedom, because the consumer doesn’t need to worry about carrying cash with them. The downfall to it would be that it allows consumers to live well above their means and someone eventually will repay the debt. If the person doesn’t pay their own debts, society as a whole will have to by paying higher prices for things. (Perreault, W.D., Cannon, J.P., & McCarthy, E. J. (2010).
Although free trade has weaknesses, there are benefits to it too. Free trade enables countries to specialise in the production of those commodities in which they have a comparative advantage. With specialisation, countries are able to take advantage of efficiencies generated from economies of