Business Firms and Industrial Structure Glossary

Of Business Firms and Industrial Structure
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Business firm
An organization under one management set up to make profits for its owners by producing goods or services that can be sold in the market.
Physical structures or locations capable of independent production with some degree of autonomy .
The least complex, most basic and common form a business can take. Basically, any person is a proprietorship.
Proprietorship with more than one proprietor.
A business formally established under legal terms and granted an identity separate from its owners.
The share of profits they receive from the corporation.
Groups of competing firms that produce similar products in the market.
Perfect information
A presumption in which buyers and sellers are fully informed with the price and availability of all resources and products.
The opposite of perfect competition, a market or industry in which only one firm produces a product for which no close substitutes exit.
Monopolistically competitive market
A market in which many sellers compete to sell a basically the same but differentiated product, and in which new entry is possible.
A market dominated by just a small number of firms(oligopolists) and entry of new competitors is difficult or impossible.