How is entrepreneurship governed by the laws of supply and ...

[ishan]

How is entrepreneurship governed by the laws of supply and demand? Give examples.

Question 2

What are the three forms of ownership to consider when starting a new business?

[ansleighelindsey]

Answer to Question 1

While entrepreneurs can choose what businesses they want to start, the marketability of their products defines their success. A business cannot survive if there is not enough demand for its product.

Entrepreneurs can use knowledge of the laws of supply and demand to help them create successful businesses. For example, a service station that was the only one located near a busy highway exit (one supplier in a high-demand environment) would be more successful than a service station located at a small town intersection near three other service stations (four suppliers in a lesser-demand environment). Entrepreneurs need to know what products, skills, and experience are necessary for success, and by whom their product will be demanded.

Answer to Question 2

The three forms of business ownership are sole proprietorship, partnership, and corporation.