Corporations are probably the dominant form of business organization in the United States. Although fewer in number, corporations account for the lion's share of aggregate business receipts in the U.S. economy.
Monopoly is a market structure characterized by a single seller, selling a unique product in the market.
What are the advantages and disadvantages of Corporation?
The advantages of a Corporation is Unlimited commercial life. The corporation is an entity of its own and does not dissolve when ownership changes.Greater flexibility in raising capital through the sale of stock.Ease of transferring ownership by selling stock.
The disadvantages of a Corporation is Regulatory restrictions. Corporations are typically more closely monitored by governmental agencies, including federal, state, and local. Complying with regulations can be costly.Higher organizational and operational costs. Corporations have to file articles of incorporation with the appropriate state authorities. These legal and clerical expenses, along with other recurring operational expenses, can contribute to budgetary challenges.
What are the advantages and disadvantages of Monopoly?
The advantages of a Monopoly.Monopoly avoids duplication and hence avoids wastage of resources. (We have to understand that duplicate and fake products are a real problem in many countries). A monopoly enjoys economies of scale as it is the only supplier of product or service in the market. The benefits can be passed on to the consumers.
The disadvantages of Monopoly. Poor level of service. No consumer sovereignty. A monopoly market is best known for consumer exploitation. There are indeed no competing products and as a result the consumer gets a raw deal in terms of quantity, quality and pricing. Consumers may be charged high prices for low quality of goods and services.Lack of competition may lead to low quality and out dated goods and services.
Most of them rely on some form of assistance from the government.Perhaps the easiest way to become a monopoly is by the government granting a company exclusive rights to provide goods or services.
What are the things that a Corporation needs to be a Monopoly?