Showing posts with label Marketing. Show all posts
Showing posts with label Marketing. Show all posts

Advantages And Disadvantages Of Monopoly

Business , General
Benefits Or Advantages Of Monopoly

The main advantages of monopoly can be described as follows:

1. Supernormal Profit

In monopoly, there is only one supplier for the entire market. Company can set selling price of goods freely as per wish. Therefore, monopolies can make supernormal profit.

2. Economies Of Large Scale

Only one company sells products to the large number of customers. Because of large volume of production and less cost of production firm enjoys the benefit of economies of large scale.

3. Government Revenue

Companies earns massive amount of profit because of monopoly. So, government can collect more tax from them. So, monopolies are good source of government revenue.

4. Price Discrimination

Price discrimination is another benefit of monopoly. Company may use this policy to benefit economically backward customers. For example, electricity authority may provide discount to poor families.

5. Research And Development

Company makes massive profit because of lack of competition in the market. So, it can invest huge amount of money for research and development activities. It helps to improve product quality and also minimizes the cost of production.

      Also Read: 

6. Promotes Innovation

Because of huge investment in research and development, monopoly promotes innovation also.

7. Face Depression

Because of being single supplier of goods and services, economic crisis like depression does not affect monopolies or company can face depression easily.

Drawbacks Or Disadvantages Of Monopoly

The main disadvantages of monopoly can be described as follows:

1. Customer Exploitation

Single seller has absolute power of setting price and supplying goods in the whole market. It may sell low quality products at higher price. So, there exists a chance of exploitation of customers in monopoly market.

2. Poor Service

Being a single trader, company may focus only on earning more profit rather than providing good service to the customers. Because of no customer sovereignty, consumers may not get quality products and proper service.

3. No Choice

Customers have no choice because there is only one supplier for whole market.

4. Higher Price

Monopoly lacks competition because there is one supplier for all customers. So, company may charge higher price for low quality products. 

5. Unfair Practice

Monopoly restricts others to enter the market. New firms cannot sell their products in this market structure. So, it is an unfair trade practice.
advantages disadvantages of monopoly
Pros And Cons Of Monopoly In Short

Pros:

- Business Firms can earn massive profit
- Companies enjoy economies of scale because of large volume of production
- Requires less marketing and promotion costs
- It encourages innovation, research and development
- Government can collect more tax from monopoly firms

Cons:

- Customers have to pay higher price for inferior products due to the lack of competition
- It lacks customer sovereignty
- Because of single supplier, there is no alternatives for customers
- It may increase customer dissatisfaction
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Advantages And Disadvantages Of Monopolistic Competition

Business , General
Benefits Or Advantages Of Monopolistic Competition

The main advantages of monopolistic competition can be described as follows:

1. Easy To Enter And Exit

The main benefit of monopolistic competition market structure is that new firm can enter the market without any barriers. Traders can exit or leave the market at any time without any restrictions and obstacles.

2. Product Differentiation

In this type of market, products are differentiated or varieties of products are available. So, it provides selection facility for buyers.

3. Advertising

In monopolistic market, products are identical or homogeneous like in perfect competition. So, firms advertise their products through different media which helps to provide information about quality, price and using methods to the customers.

4. More Profit

Companies are free to set price of their products. So, they can set higher price of goods and services which generates more profit.
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5. Better Quality

Because of the ability to fix price and chance of more revenue, companies try to improve product quality. It helps to retain existing customers and attract potential customers.

6. Innovation

Monopolistic competition encourages innovation. Companies regularly perform research and development activities to add new features to their products which helps to increase quality and value.

Drawbacks Or Disadvantages Of Monopolistic Competition

The main disadvantages of monopolistic competition can be described as follows:

1. Higher Price

In this type of market, product price is higher than perfect competition because of the following reasons:
* Firm can set price itself
* Firm invests huge amount of money in advertisement and other promotional activities
* Wastage of resources such as excess packaging, marketing etc. 

So, customers have to pay more money in monopolistic market.

2. Misleading Customers

Various promotional activities are conducted to provide information about the products and services. Sometimes wrong information can mislead the customers.
advantages disadvantages monopolistic competition
3. No Economies Of Scale

Because of larger number of traders, all companies cannot enjoy the benefit of economies of scale.

Pros And Cons Of Monopolistic Competition In Short

Pros:

- Customers get selection facility because of different alternatives
- Companies can easily enter or exit the market because of less barriers
- Customers get detail information about the products or services
- It promotes innovation
- Because of competition customer get quality products at lower price

Cons:

- Price of the product may become high because of high marketing budget
- There is no economies of scale
- False information about products may mislead customers
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Advantages And Disadvantages Of Perfect Competition

Business , General
Merits Or Advantages Of Perfect Competition

The main benefits or advantages of perfect competition can be described as follows:

1. Easy Entry And Exit

In perfect competition, business firms or traders can enter the market and start business without any restrictions. They can exit or leave the market at any time without any obstacles. So, there is no entry and exit barriers in this type of market structure.

2. Lower Price

In this type of market, price of product or service is fixed by demand and supply mechanism. If any trader charges higher price then customers are free to buy products from another shop. So, consumers can fulfill their requirements at lower price.

3. No Consumer Exploitation

Due to competition, customers can get standardized products at affordable price because sellers cannot influence the market. Therefore, perfect competition discourages consumer exploitation.

4. Less Promotional Cost

As we know that this market structure deals with homogeneous products and price is fixed by the market mechanism, producers do not need to invest huge amount in advertisement, publicity and other promotional activities.

5. Optimum Utilization Of Resources

Because of lower price, firms earn less profit. Therefore they try to increase efficiency and minimize wastage by utilizing resources properly which helps to lower the cost of production.

Demerits Or Disadvantages Of Perfect Competition

The main drawbacks or disadvantages of perfect competition can be described as follows:

1. Less Profit

It is very difficult for small traders to sustain in the market because of the lack of incentive and lower profit margin.

    Also Read: 

2. Limited Choice

This market deals with identical or homogeneous products and services. Therefore there is a limited choice for customers. Because of the lack of variety, customers have no selection facility.

3. No Economies Of Scale

There are various firms trading similar types of products. So, business firms cannot enjoy the benefit of economies of large scale. 
advantages disadvantages of perfect competition
Pros And Cons Of Perfect Competition In Short

pros:
- It discourages customer exploitation
- It creates active business environment
- There are no restrictions to enter or exit the market
- Customers get high quality products at reasonable price
- Producers focus on maximum utilization of resources to improve efficiency
- It requires less advertising and publicity budget

cons:
- It is difficult for small traders to sustain because of high competition
- It lacks product differentiation
- Firms cannot enjoy the benefit of economies of scale
- In this market, profit margin is very low. So producers cannot make sufficient investment for research and development purpose.
- Customers get limited choice
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Advantages Of Marketing

Business , Marketing
Roles, importance or advantages of marketing can be described from customer's, business firm's and society's point of view as follows:

Benefits Of Marketing To Customers

The main advantages of marketing to customers can be studied as follows:

1. Need Satisfaction

As we know that the main objective of marketing is to satisfy customers by producing and supplying goods and services as per their needs or wants. So, marketing is important to fulfill needs and to provide satisfaction to the customers.

2. Providing Information

Marketing uses different methods and techniques such as advertising, sales promotion, publicity etc. to inform potential customers about the quality, taste, price, using methods and uses of products and services. So, it helps to provide information to the customer before buying goods.

3. Selection Facility

In market, we can find similar types of products produced by different firms. Marketing helps to identify the brand and select products according to their needs and interest. 

4. Improve Lifestyle

Marketing promotes better lifestyle by providing quality goods and services at affordable price. So, it helps to improve the living standard of the people.
 
Benefits Of Marketing To Business Organizations

Marketing is important or advantageous for business firms because of the following reasons:

1. Increase Production

Business firms uses different marketing techniques (advertising, sales promotion, public relation etc.) to enlarge the market. It helps to find new market and new demand for their products. So, marketing helps to increase production.

2. Revenue Generation

In any business company, there are different departments or functional areas such as production department, human resource department, accounting department, administrative department and marketing department. Among these departments only marketing generates revenue for the company. So, marketing activities are important to earn profit for the firm.

3. Planning And Decision Making

Marketing provides useful data and information about market, customers behavior, competitors, government policy etc. to the management. So, it helps the manager in planning and decision making process.

4. Increase Goodwill And Image

Marketing always tries to satisfy customers by providing goods and services according to their needs and wants at lower price. Satisfied customers become loyal to the company which helps to improve goodwill and image of business firm.
advantages of marketing
Benefits Of Marketing To The Society

Advantages of marketing to the society or nation can be explained as follows:

1. Economic Development

Marketing promotes productivity and efficiency which leads to maximum utilization of resources (natural resources, physical resources, finance resources etc.) in the country. Proper utilization of resources, better productivity and efficiency help to increase national income which helps in the economic development of the nation.

2. Employment Opportunities

Marketing promotes industrialization in the country. It generates employment opportunities in different ares such as research and development, production, promotion, distribution etc. So, it is very important to create employment opportunities in the country.

3. Rise In Standard Of Living

Marketing provides better quality products at lower price to the customers which helps to improve their lifestyle. It provides employment opportunities and helps to break vicious poverty circle in the society. So, it raises the living standard of the people.

4. Utility Creation

Marketing creates time utility (storage), form utility (product development), place utility (transportation), and possession utility (exchange) of products or services.
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Advantages And Disadvantages Of Centralized Stores

Accounting , Business
Merits Or Advantages Of Centralized Stores

The main advantages of centralized stores can be expressed as follows:

1. Economical

In centralized store, materials are kept only in one warehouse. More goods can be stored in single location that minimizes inventory costs, administrative costs and handling costs. So, it is economical than decentralized stores.

2. Better Control And Supervision

Because of single location and less storage space, it is easier for the storekeeper to inspect, supervise and control inventory properly.

3. Wastage Minimization

Because of proper supervision and tight control misuse and wastage can be minimized. Wastage minimization leads to decrease in the cost of production which helps to increase profitability of the business.

4. Safety

Centralized store ensures safety of goods because of better layout, better supervision and better store audit.

advantages disadvantages centralized stores

5. Fewer Employees

These stores can be managed by fewer specialized employees.

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6. Suitable For Small Firms

Centralized store is suitable for small and medium sized companies with less production units and departments.

Demerits Or Disadvantages Of Centralized Stores

The main drawbacks or disadvantages of centralized stores can be expressed as follows:

1. High Transportation Cost

Materials are supplied to different departments, branches and production units from single store. Therefore, it requires extra transportation and handling costs.

2. Chance Of Delay

Sometimes production centers cannot receive required materials on time because of delay in supply. In this situation production process may be interrupted.

3. Risk Of Loss

In centralized stores, large volume of stock are kept in single location. It increases the risk of loss by flood, earthquake, fire etc. There also exists a risk of obsolescence.

4. Unsuitable

These type of stores are not suitable for big manufacturing companies with several production units, branches and departments.

Pros And Cons Of Centralized Stores In Short

Pros:
- It reduces storing, material handling and supervision costs
- There is better supervision and store audit
- It is suitable for small manufacturing companies
- It minimizes staffing and stationary costs
- It helps to minimize the wastage of materials
- It requires less space for storing goods

Cons:
- It is not suitable for big manufacturers
- There is a possibility of delay in supply of materials
- There is a high risk of obsolescence
- It requires more transportation cost
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Advantages And Disadvantages of International Trade

Business , Marketing
Benefits Or Advantages Of International Trade

Some of the major advantages of international trade are as follows:

1. Promotes Specialization And Division Of Labor

International trade encourages the country to produce unique and quality products that can be easily exported in foreign countries. It requires specialization and division of labor for innovation and production of quality goods at lower price. So, it promotes specialization and division of labor.

2. Maximum Utilization Of Resources

Countries produce goods according to their available resources like natural resources, technological resources, financial resources etc. So, it helps to utilize country's resources properly.

3. Availability Of Products

Necessary goods can be imported from other countries to fulfill the demand of domestic country. So, international trade helps to obtain required products to satisfy country's demand.
4. Elimination Of Monopoly

Foreign trade discourages monopoly in the market because required commodities can be easily imported and surplus products can be exported in different countries. So, traders have no chance to create monopoly.

advantages disadvantages international trade

5. Industrial Development

Raw materials, technology, machinery and skills can be acquired from abroad because of international trade. This promotes industrial development in the country.

6. Lower Cost

International trade promotes specialization, division of labor and optimum utilization of resources by which large scale production with minimum wastage and leakage is possible. So, it helps to lower the cost of production.

7. Employment Opportunity

Because of international trade, large scale industries are established in the country. So, many people get job in the country. So, it creates employment opportunity.

Drawbacks Or Disadvantages Of International Trade

The main disadvantages of international trade are as follows:

1. Threat To Domestic Industries

Foreign trade may create threat to domestic industries because of the import of cheap products. Small industries may suffer due to unfair competition with big foreign companies.

2. Over Exhaustion Of Resources

Unrestricted export of minerals and raw material may lead to exhaustion of resources in the country. This may create environmental, social and economic problems in the future.

3. Shortage Of Goods

Producers try to export more products to expand market share and to earn more profit. This may create shortage of good in the domestic market.

4. Supply Of Harmful Products

Due to international trade, harmful goods may be imported in the country. Supply of these products in local market may effect people's health. Import of unnecessary goods negatively effects the economy.

Pros And Cons Of International Trade In Short

Pros:
- Ensures Maximum Use Of Country's Resources
- It helps to eliminate monopoly in the market
- It helps to bring specialization in the production process
- It minimizes the cost of production because of large scale production
- It generates employment opportunity because of industrial development in the country

Cons:
- High possibility of over exhaustion of natural resources
- It may create threat for domestic industries because of unfair competition
- Increases the risk of import of inferior and harmful products 
- It may increase economic dependence due to the loss of self sufficiency
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Advantages Of Protectionism

Business , Marketing
Main benefits or advantages of trade protectionism can be studied as follows:

1. To Protect Emerging Industries

Protectionism guards infant national industries from foreign firms. It is a defensive measure which helps the newly established domestic business to grow and well-flourished.

2. To Create Job Opportunity

Protectionism helps to create employment opportunities for local people. If local industries are well-flourished then job opportunities are created in the country.

3. To Prevent Dumping

Foreign producers export their goods at very low price and attract customers in order to capture the market. So, protectionism is useful to protect against dumping.

                 
advantages of protectionism

      Also Read: 

4. Correction Of Balance Of Payment

Protectionism policy helps to correct balance of payment of the nation by discouraging importing and encouraging exports.

5. Preserving National Resources

Protectionism restricts the exports of national resources of the country. It helps to limit the over exhaustion of resources. 
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Disadvantages Of Free Trade

Business , Marketing
Major drawbacks or disadvantages of free trade can be highlighted as follows:

1. Economic Dependency

Because of free trade, economic dependency with foreign countries is encouraged which negatively affects the self-sufficiency of the country.

2. Unfavorable Effects On Domestic Industries

Free trade hampers the development of local industries because they cannot compete with large foreign industries. It effects the industrialization policy of the state.

3. Exhaustion Of Resources

Because of free trade policy, large quantity of natural resources ( in the form of raw materials) are exported without barrier. So, it exhausts the resources of developing countries.

            disadvantages of free trade

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4. Import Of Harmful Products

There is high chance of import of harmful products in the country because of barrier free trade policy.

5. Unequal Distribution Of Gain

Free trade does not promote equal distribution of trade gain among the countries. 
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Advantages Of Free Trade

Business , Marketing
Main benefits or advantages of free trade can be highlighted as follows:

1. Higher Efficiency

Under free trade, domestic firms have to compete with large foreign producers. So, domestic companies try to increase their efficiency by effectively utilizing the resources.

2. Promotes Specialization

Under free trade, every countries try to produce goods as per their comparative advantage. So, it promotes specialization and division of labor to earn higher return.

3. Reasonable Price

Due to free competition, free trade facilitates wide range of quality products at lower and reasonable price.
advantages of free trade
4. Gain Of Technology

Free trade helps to gain latest technology and modern machinery from foreign countries. It helps in the industrial development of the state.

5. Gain Of Capital

Huge amount of capital can be attracted in the country because of barrier free trade. It helps the economic development of the country.

     Also Read: 

6. Employment Opportunities

Free trade brings capital and technology to promote industrialization in the country. Industrialization creates employment opportunity.

7. Market Expansion

Free trade helps to expand the size of production and market because domestic products can be easily sold in the international market without any barrier.

8. Restrict Market Exploitation

It restricts market exploitation and monopoly of domestic companies.
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Disadvantages Of Protectionism

Business , Marketing
Major drawbacks or disadvantages of trade protectionism can be expressed as follows:

1. High Price For Low Quality

Because of trade protectionism, domestic producers can raise the price of their products and services without maintaining the quality. Due to the lack of competition, produces focus only on profit rather than quality.

2. Limited Choice To The Consumers

Barrier in trade restricts foreign products which limits the range of goods and services in the market. So, consumers have to be satisfied with with limited number products and services.
disadvantages of protectionism
3. Idleness In Domestic Industries

In the absence of free competition, domestic industries may become idle. They may not try to improve quality, technology and management as per the requirement and consumers' choice.

     Also Read: 

4. Situation Of Monopoly

There will be a high chance of monopoly in the market because of protectionism.

5. Inefficient Resource Allocation

Trade protectionism discourages specialization and innovation. It results in inefficient allocation of resources.
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Disadvantages Of Market Economy

Business , Economics
Main drawbacks or disadvantages of market economy can be highlighted as follows:

1. Wealth Disparity

One of the major drawbacks of market economy is unequal distribution of wealth. It widens the gap between wealthy and poor individuals. Rich people become more wealthier and poor become more poorer.

2. Distorted Investment

Producers invest their capital only in profitable sectors. So, factors of production are not employed adequately in public sectors like education, health, transportation etc. 
disadvantages market economy
3. Workers Exploitation

In market economy, workers are highly exploited by the producers. Bad working condition, no safety measures, long working hours and less wage payment are the major problems of workers.

4. Economic Instability

Because of the lack of control, regulation and supervision, market economy may create uncertainty and instability in the whole economy of the country.

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5. Poor Quality Goods

Main motive of market economy is profit maximization. So, producers can make low quality products to earn more profit.

6. Monopoly

Large producers can dominate the market by eliminating the rival companies. It may create monopoly in the market.
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Disadvantages Of Multinational Company

Business , Marketing
Main disadvantages or drawbacks of multinational company can be highlighted as follows:

1. Complex Legal Requirements

Multinational companies need to follow complex legal requirements and strict laws of host country. So, it is very difficult to establish and operate business in foreign countries.

2. Loss Of Sovereignty 

Multinational companies tries to influence internal politics and they disregard national policy and priorities of the host country. This may negatively impact sovereignty of the host country.

3. Threat To Local Industries

Multinational companies may dominate local industries by increasing unfair competition and by establishing monopoly in the local market of host country.
disadvantage multinational company


4. Transfer Of Capital

These companies bring large amount of money to the host country. It may create negative impact in the economy of home country.

5. Labor Exploitation

Multinational companies offer low wages to the employees of host countries in order to increase profit. So, exploitation of labor is a major drawback of these companies.
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Advantages Of Multinational Company

Business , Marketing
Main advantages of merits of multinational company can be highlighted as follows:

1. Foreign Direct Investment

Multinational companies bring foreign currency in the form of foreign direct investment to the host country. So, it helps to maintain the adequate stock of foreign currency to the developing countries.

2. Employment Opportunity

Multinational companies create large employment opportunities in the host countries. It helps to minimize the unemployment rate of the country.

3. Arrival Of New Technology

Multinational companies bring new skill, latest technology and modern machinery from the home country to the host country in order to operate the business. It helps industrial development of the country.
advantages multinational company
4. Resource Utilization

Multinational companies utilize unused local resources ( like water, land, forest, mines etc.) by using their skills and technology.


5. Increase Government Revenue

These companies pay more tax than local companies. So, multinational companies help to increase government revenue.

    Also Read: 

6. Improve Balance Of Payment

Multinational companies help the host countries by promoting exports and decreasing imports. So, it helps to improve balance of payment of the country.

7. Overall Development

MNCs bring capital and technology from home countries, create employment opportunities, improve balance of payment of the host country. So, these companies are very helpful in overall development of the country.
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Disadvantages Of Joint Stock Company

Business , Marketing
Main disadvantages or demerits of joint stock company can be expressed as follows:

1. Difficult To Form

It is a complicated process to form and operate joint stock company. Lots of legal formalities, high set-up costs and much time is needed to establish this type of business.

2. Lack of Quick Decision

In joint stick company salaried manager cannot make any decision. Important decisions are taken after the approval of board of directors. Therefore, decision making process is lengthy and prompt action is not possible. 

3. No Secrecy

In joint stock company, it is not possible to maintain business secrecy and privacy like sole proprietorship and partnership firms.All the financial data and information become public through financial statements and all the matters are discussed in annual general meeting with the shareholders and other parties.

Ownership and management are different in joint stock company. All the organizational activities are performed by salaried managers. A company do not provide extra incentive for their work which may lack motivation and personal interest for the growth of the business.

5. High Tax

Joint stock company suffers from higher tax rate than sole trading concern and partnership firm. It has to pay more tax than other types of business.
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Advantages Of Joint Stock Company

Business , Marketing
Merits or advantages of joint stock company can be studied as follows:

1. Limited Liability

In joint stock company shareholders' liability is limited to the amount of share they invest in the business. So,  their personal property will not be used to pay the debt and other liabilities of the business in case of loss.

2. Perpetual Existence

Joint stock company is stable and long lasting form of business (as compared to sole proprietorship and partnership firm). The death, lunacy, or insolvency of the shareholder does not affect the existence of the company.

3. Easy Transfer of Share

A shareholder of joint stock company can easily sell or transfer the right of share to any one without any restriction. 
advantages joint stock company
4. Large Capital

It can raise large amount of capital by issuing equity share and by taking long-term loan from banks and other financial institutions. So, the company does not suffer from the limitations of inadequate capital.


5. Scope Of Expansion

Because of huge capital resources and better management, large scale production is possible. So there is a scope of future growth and expansion.

6. Efficient Management

Joint stock company is run by experienced, skilled and talented professionals. It helps to increase the efficiency of management.

     Also Read: 

7. Economic Development

A joint stock company collects and mobilizes scattered savings, promotes industrialization, and creates employment opportunities in the society. So, it plays significant role in the economic development of the country.

8. Flexibility

A company has the ability to cope with both internal and external business environment. Changes or modification in working pattern can be made as per the situation. So, joint stock company is a flexible type of business organization. 
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Disadvantages Of Partnership Firm

Business , Marketing
Main drawbacks or disadvantages of partnership firm can be highlighted as follows:

1. Uncertain Future

The future of partnership firm is always uncertain. It may be shut down in case of lunacy or death of a partner.So, there is instability in this form of business.

2. Unlimited Liability

All the partners are liable for the losses of business. They have to sell their personal property in order to pay debts and other liabilities of the business.
disadvantages partnership firm
3. Disagreement

There is a chance of disagreement between partners in partnership business. Misunderstanding and mistrust may create dispute among the partners.

4. No Prompt Decision And Action

In partnership firm, there should be interaction, consultation and approval of all partners to make a decision. It delays decision making process. Prompt action is not possible because of delayed decision.

      Also Read: 

5. Limited Capital

Partnership firms have more capital than sole proprietorship business but they have very limited amount of capital while comparing to joint stock companies and multinational companies.

6. No Public Faith

Partnership firm lacks legal status because no legal procedures are followed to start the business. It will be hard for the public to believe such business. So, it lacks public faith.
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Advantages Of Partnership Firm

Business , Marketing
Advantages or merits of partnership firm partnership firm can be highlighted as follows:

1. Easy To Commence

Partnership firm can be established and operated easily. It does not require legal process and formalities to start partnership business. Registration is not compulsory.

2. Low Set-up Cost

It can be commenced with low set-up costs. It does not require large capital to operate partnership firm. Partners may increase capital to expand their business as per the requirement.

3. High Borrowing Capacity

In partnership firm, large amount of capital can be raised because there are more partners to provide fund. Banks and other financial institution also provide loans easily to the partnership firms as compared to sole trading concern. 

4. Better Management

Better management is possible because of the sense of ownership, combined talent and coordination among the partners.

         Also Read: 

5. Division Of Risk

In partnership firm, all the business losses are borne by all partners as per the partnership deed. Debts and other liabilities are not borne by a single partner like in sole proprietorship.


6. Privacy

It is not compulsory to publish financial statements of partnership firm. So, it helps to maintain privacy and secrecy of the business.
advantages partnership firm
7. Flexibility

The size and working pattern of the business can be modified or changed as per the need and the environment. So, it is a flexible form of business organization.

8. Equal Rights

It ensures equal rights to all the partners. They have equal right to express their feelings, opinions and to take part in decision making process of the firm.

9. Easy To Wind Up

It can be dissolved or wind up easily at any time by making agreement between the partners. It does not require legal formalities to shut down the business.
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