Tasty Treats

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

Entrepreneur: me

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.

Advantages/ Disadvantages


  • full control of my business
  • receiver of all profit
  • no special business taxes


  • unlimited personal liability
  • limited life
  • limited access to resources