Sole Proprietorships Sole proprietorship A business owned and

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Sole Proprietorships • Sole proprietorship: A business owned and run by one person •

Sole Proprietorships • Sole proprietorship: A business owned and run by one person • Easy to start • Just need to pay business licenses and fees • Ex: Opening up your own restaurant

Partnerships • Partnership: A business jointly owned by two or more persons • Types

Partnerships • Partnership: A business jointly owned by two or more persons • Types of partnerships • General partnership • Limited partnership • Easy to start • Partners decide how to divide losses and profits

Corporations • Corporation: A business organization recognized by law as a separate entity having

Corporations • Corporation: A business organization recognized by law as a separate entity having the rights of an individual • To form a corporation: • Government Charter • Stocks • Investors

Horizontal Mergers • Two or more businesses that produce the same kind of product

Horizontal Mergers • Two or more businesses that produce the same kind of product join together

Vertical Mergers • When businesses involved in different steps of manufacturing or marketing join

Vertical Mergers • When businesses involved in different steps of manufacturing or marketing join together

Conglomerates • A business that has at least four businesses all making different products

Conglomerates • A business that has at least four businesses all making different products

Multinational • A corporation that has manufacturing or service operations in a number of

Multinational • A corporation that has manufacturing or service operations in a number of different countries

Perfect Competition Many sellers Easy to enter and exit the market Everyone is wellinformed

Perfect Competition Many sellers Easy to enter and exit the market Everyone is wellinformed Identical products Price set by supply and demand

Monopolistic Competition Easy to enter or exit the market Limited control over price Product

Monopolistic Competition Easy to enter or exit the market Limited control over price Product Differentiation Nonprice competition Advertising

Oligopoly A few very large sellers Difficult to enter the market Differentiated products Price

Oligopoly A few very large sellers Difficult to enter the market Differentiated products Price maker Use collusions and price-fixing Some advertising

Monopoly Only ONE SELLER of a particular product No close substitutes Sets its own

Monopoly Only ONE SELLER of a particular product No close substitutes Sets its own market prices Almost impossible to enter the market

Natural Monopoly Occurs when it would be too costly, difficult, etc. to have another

Natural Monopoly Occurs when it would be too costly, difficult, etc. to have another business offering G&S in that area 13

Geographic Monopoly Occurs when it's the only business selling that G&S in town 14

Geographic Monopoly Occurs when it's the only business selling that G&S in town 14

Technological Monopoly Occurs due to patents or copyrights 15

Technological Monopoly Occurs due to patents or copyrights 15