Question

Proprietorships are by far the most common type of business, yet they account for a very small percentage of all sales compared to corporations. Why is this?
Help please >.< Thanks ^^

Answer 1

Answer:

Mostly because of the scope and influence of big corporations. Although it is easy to start a proprietorship, it is known that revenue will always be limited for that kind of enterprise.

A proprietorship is synonymous with a single person running the company. Usually, small grocery shops, studios, mom-and-pop stores are examples of proprietorship. They will never account for revenue that is even similar to that of a well-known corporation.

Why? Corporations have an advantage over numerous factors:

- bigger budget for investments and various improvements

- omnipresence - Usually, corporations have branches all over the world, reaching out to more customers.

- brand image - This is due to the previous factor. Customers may find corporations and chains more trustworthy, as their grasp of business and operations is huge.