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- Definition of Business Structure
- Tanner Kennedy(partnership in oligopoly)
- What is a business structure?
- It is how a business is legally organized. The type affects how it is regulated, taxed and more. The four main types are sole proprietorship, partnership, limited liability company, and corporation.
- Definition of Market Structure
- What is a market structure?
- It refers to how different industries are differentiated based on their degree of nature of competition for goods and services. The four main types are perfect competition, oligopoly market, monopoly market and monopolistic competition.
- Partnership in Oligopoly
- What would it take for us to go into a partnership in oligopoly?
- To start a business we would have to split the cost of revenue and liability. We would have to sell a thing or service that is not in much competition. This would take a lot of work and a crazy amount of money. Oligopoly's are like big airports and grocery stores.
- How a corporation could be a monopoly?
- I don't think I want to own the whole chain, I just want to own the products that the stores. I don't want to face competition, I want to be the sole seller of goods with no substitutes.
- Maybe you should start a monopoly. A monopoly is characterized by the absence of competition, which can lead to high costs for consumers, inferior products and services, and corrupt business practices. A monopoly would turn into a corporation when people invest into the company through stocks.
- Why a sole proprietorship could be in a monopolistic competitive industry?
- What if I wanted to own my own business by myself and just compete with similar businesses to mine?
- That would be a sole proprietorship instead of a partnership that we talked about earlier. Also, since you are thinking about some competition that would be considered a monopolistic competitive industry. This would take less money to start up then the oligopoly.
- Why a sole proprietorship could be in a perfectly competitive industry?
- Okay, so I am going to open a sole proprietorship! How could my business be in a perfectly competitive industry?
- I think that's a great option! You will not have any barriers to enter or exit the market, absence of price control, but you will have to have identical goods. If you check all these boxes you will be in a perfectly competitive industry.
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