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Ainat [17]
3 years ago
7

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 ^^
Business
1 answer:
DerKrebs [107]3 years ago
4 0

Answer:

Mostly because of the <u>scope and influence of big corporations</u>. 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<em> budget</em> for investments and various improvements

- <em>omnipresence</em> - 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.

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A system for strategic management and planning is the balanced scorecard (BSC). Businesses employ BSCs to:

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