In this Project, i will talk about market structure and business organizations and how a sole proprietorship could be in a perfect competitive industry.
In perfect a competition there are many buyers and suppliers and the firms have no control over the prices, both the buyer and the seller are informed about the products,the products are sold as the same product.
There are 4 types of perfect competition,monopoly,oligogoly and monopolistic competition
A market structure is a web of interconnections inside a market
A market structure is especially focused on these characteristics affecting the pricing and competiotion
Some example of a business organization is (Ownership) are : a corporation,partnership ,and sole proprietorship
A Business organization is a entity focused at continuing commercial enterprise by providing goods or services to meet the demands of the costumer
A sole proprietorship refers to the fact that a company is owned by just one person
The good thing about a sole proprietorship is the owner has the power to do whatever they want with the firm,that means the owner gets all the profits so they are very effective with no employees, the disadvantage of this is the owner is held accountable for everything and finding a bank to finance the startup cost is difficult.
The only bad thing about a sole proprietorship is finding someone to invest in your company, you are held accountable for everything, these factors may damage the firm much and take it out of market as the consumers will look somewhere else for goods and services with the current market structure i am talking about.
Knowing all the concepts, in my opinion a sole could be in a perfect competitive industry as long as it pays attention to its customers on how much to produce
This kind of business organization might be successful in a pure competitive market, the owner of the firm has to decide how many units of product or service they will have to produce, everything else is up to the market