Tag: economics

Advantages and Disadvantages of Privatisation
Finance and Business

Advantages and Disadvantages of Privatisation

There has been a growing demand for privatisation as well as public-private partnerships in many local and state governments. With uncertain times ahead, it is important to understand how it affects us and our economy. Here is a look at what privatisation is as well as its benefits and drawbacks. WHAT IS PRIVATISATION? The concept of privatisation does not just have one fixed meaning. It can mean different things on the basis of its context. This includes privatisation of a public sector enterprise to the private sector, outsourcing government services to private entities, or even a strictly regulated private firm becoming less organised. So it is an umbrella term giving private players a greater role in decisions about what, where, and how to produce goods and services. However, for bre...
Advantages and Disadvantages of Sole Proprietorship
Business

Advantages and Disadvantages of Sole Proprietorship

When an individual decides to start a business, they have hundreds of decisions to make. They have to decide the scale of their business, the location, and many more. One very important decision that they have to take is with regards to the ownership of their firm. There are various options to choose from. One of them is sole proprietorship. Like all other options for all questions in the world, it has its own advantages and disadvantages. WHAT IS SOLE PROPRIETORSHIP? Sole proprietorship is the oldest and most common form of business ownership. Its name is pretty self-explanatory. sole+proprietorship. “Self” implies one’s own and “proprietorship” implies ownership. A sole proprietorship is a business entity that is fully owned by one person. This individual owner is known as a “sole prop...
Advantages and Disadvantages of Capitalism
Business

Advantages and Disadvantages of Capitalism

Throughout the history of civil society, various empires have existed. All of these empires have had different economic histories. A major reason why they have had different economic histories is that they had different economic systems. One of the types of economic systems is capitalism. Because of its advantages and disadvantages, it has had wildly different impacts on economies. WHAT IS CAPITALISM? In simple terms, capitalism is an economic system wherein private ownership is a concept. It means that private entities, such as individuals or corporations own the 4 factors of production. They are entrepreneurship, capital, land, and labour. WHAT IS ENTREPRENEURSHIP? Entrepreneurship is the act of individuals or corporations manufacturing goods and services to earn profit. An entrepren...