we provide people with delicious sweets for any occasion.
Factors of Production
Land: eggs, milk, flour, sugar
Labor: mixing up the cupcakes
Physical Capital: bakery, ovens
Human Capital: knowledge of baking
My company is a sole proprietorship because I am the only owner
If I entered into a horizontal merger with another well off cupcake business, our combined business would most likely become the one that everyone came to to get cupcakes because it will be so big and everyone will want their cupcakes from our shop.
- full control of my business
- receiver of all profit
- no special business taxes
- unlimited personal liability
- limited life
- limited access to resources