The Major Disadvantage of a Sole Proprietorship Is the Fact

question 6

True/False

The major disadvantage of a sole proprietorship is the fact that the owner of the establishment has limited liability.

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Definitions:

Oligopolistic Competition

A market structure characterized by a small number of firms that dominate the market, leading to competitive yet interdependent pricing and marketing strategies.

Price Wars

A competitive situation where retailers or producers continuously lower prices to attract customers, often at the expense of profit margins.

Product Differentiation

The strategy of distinguishing a product or service from others in the market to make it more attractive to a particular target market.

Profit Orientation

A company objective that can be implemented by focusing on target profit pricing, maximizing profits, or target return pricing.