When partners can't get along and suffer from disagreements the business suffers. This can contribute to the businesses inability to stay together as a cohesive organization. Control of the business is in the hands of each of the partners and percentage of control is stated in the contract agreement at the start of the business. All partners have equal voting right regardless of how much money the contributed to the business. Partnerships, like sole proprietorships, can do business in other states
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.
All partners share in the decision making for the business. A partnership agreement is usually established in order to delegate the responsibilities of each partner such as who will make decisions for the business, how will profits and losses be shared, how much money and time each partner will contribute and even a plan in the event a partner chooses to terminate their share of the business. The main advantage of this entity is that it allows more expertise as well as financial support in order to make a business grow. The main disadvantage is that just like the sole proprietorship, the personal assets of each partner will not be spared if the company faces financial
National business is a business which is located in the whole country. These types of business normally franchise this is means the governments allows the owner to sells their product or service. International business is a business which is located in more the one country. An example of this would be Tesco or McDonald’s because they’re both located in different countries such as America and England. Size and Scope of Business Small size and scope businesses are normally privately owned or sole traders this is because they have a small amount of employees which means they can’t afford to have more in a small shop.
Monopoly is where only one company is providing a good and or service. Businesses may maximize profit in each market type by agreeing upon a lay down price. Perhaps businesses cannot agree upon a set price then the price is going to be above marginal cost. If the company is in competition with other companies in the same market, making decisions about prices, how they advertise, output, etc, can influence the profits of every, if not all companies in the same market. This is where management gets involved to ensure the company that their strategic way of thinking and planning can and will allow the company to gain
Robber Barons People who have been considered “Captains of Industry” have also been given the title “Robber Barons”. Is there really a difference in the two? While Robber Barons have been known to take as many resources as they can from an area they are also known for giving little to those who help them become rich. Often times they come in with flowing promises of better homes and cleaner cities to entice workers to live there. However, many workers find that does not happen.
A sole proprietor however does not necessarily have to run the business him, the owner can have others oversee and run the operations of the business just not as a partner, the owner is the overall decider of what will happen and will dictate the businesses future. This type of business form is the most widely used throughout the country, however it is not a form of business that is necessarily run with a large employee count. Rather it tends to be used with companies of one-person or a small number of employees. Advantages * Simple – start up is basically easy; the only legal item needed at first is state or local permits and licenses. If you want the business to have a name other then your given name you can file a request for that.
I think that using common sense you can choose what product is good and which is bad and if you should go one route or if you should go a different route. In business you have to use your head but when it comes to for example his product then you are choosing a product with harsh chemicals or a product with less harsh chemicals, better for the environment, and good for the people using it then it should be common sense however many companies because of cost will go with harsh product because it is cheaper but they aren’t using common sense. I agree that in many
Product modification includes altering the characteristics of the product specifically quality, performance, appearance, etc. in order to increase the value of the product and sales. Market modification is when a company seeks new customers or attempts to increase a product’s use with existing customers. The repositioning of a product is an action taken to increase sales. This changes the place a product occupies in a costumers mind as compared to the competition.
On the other hand, Credit Unions are very similar to banks; however, credit unions offer some unique characteristics that make the institution different. First Credit unions have members, not customers, that mean that a member is part of the financial institutions and can be part of the board and make decisions on benefic of the members. A credit union is a non-profit, which means that that it offers better interest rates on them consumer products, as result, member of the credit union are eligible to find wonderful rates on loans and higher interest rates