Business Organizations
Market Structures
100
The degree of ownership
How do we distinguish between a sole proprietorship, a partnership, and a corporation?
100
By the degree of competition
How do we distinguish between Perfect Competition, Monopolistic Competition, Oligopoly, and Monopoly?
200
Owned by one person, easy to start, unlimited liability, and limited life
What are the characteristics of a sole proprietorship?
200
One producer, known as a price setter
What are the characteristics of a monopoly?
300
Owned by two or more people, specialization, easy to start, unlimited liability, and limited life
What are the characteristics of a partnership?
300
Few producers, American car companies, and Soft Drink Producers are examples
What are characteristics of an oligopoly?
400
Issues stock, difficult to start, limited liability, and unlimited liability
What are the characteristics of a corporation?
400
Many producers, similar but not identical products, and product differentiation/branding
What are characteristics of monopolistic competition?
500
The more shares of stock a person owns, the more of the corporation they own
What is the correlation between the shares of stock held and how much of the corporation a person owns?
500
Many producers, identical products, lots of advertising, and known as a price taker
What are characteristics of perfect competition?
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