Sole Proprietorship in perfect competition
Storyboard Text
- We are able to adapt to what society wants and even if someone else has a similar item but we are both getting revenue. We are able to be in competition but not shut down because the other is getting more business.
- I own a sole proprietorship business
- How could a sole proprietorship be in a perfectly competitive industry?
- What kind of business do you have?
- Sole Proprietorship in Perfect CompetitionBy Alyssa Gaertner
- How competition or lack thereof will impact supply and/or demand in this market structure?
- As long as the competition doesn't set the market price and we both are getting customers there won't be much impact on the market structure. If there wasn't competition then either we would get more customers/income or the item is not as wanted as thought.
- What are the advantages and disadvantages?
- Some advantages of having a sole proprietorship are the owner gets to keep all profits after paying income taxes, it's easy to start, little amount of paperwork and legal expenses to open, control of the business, and we can adapt to the changes in the market. Some disadvantages are personal liability where if the business fails the owner may have to sell personal property to cover expanse, has to find capital to expand business, and can't provide fringe benefits to employees.
- Thank for your time and explaining things for me.
- You're welcome I hope that helps you on you future decisions.
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