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Many Businesses Are Structured in the Form of Sole Proprietorships

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Essay

Many businesses are structured in the form of sole proprietorships. What is a sole proprietorship? Provide an example of a business that would commonly be operated as a sole proprietorship. What are the advantages and disadvantages of operating as a sole proprietorship?


Definitions:

United States

A country located in North America, consisting of 50 states and a federal district, known for its significant influence on global economy, culture, and politics.

Net Social Gain

The overall benefit to society, measuring the difference between total benefits and total costs when any action or policy is implemented.

Consumer Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service and the total amount they actually do pay.

Monopoly

A market structure characterized by a single seller, selling a unique product in the market with no close substitutes, leading to a lack of competition.

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