The four types of competition in the field of business are pure competition, imperfect competition, oligopoly and monopoly. There is also a variation called monopolistic competition.Know More
In an environment of pure competition, there are no barriers to entering the market. There are multiple sellers and no single company or group of companies dominates the market. Consumers can buy the products or services easily and choose from a number of different suppliers. The products or services themselves are easily replaced by those of another competitor and prices are set by what the market is willing to pay. Small businesses such as convenience stores are an example.
Imperfect competition is similar to perfect competition in that there are multiple sellers and no barriers to entering the marketplace. The difference is that the sellers are offering essentially the same product with variations in quality and price. The restaurant business in an example.
In an oligopoly, a limited number of companies compete for clientele. The product in question may be differentiated between companies or exactly the same. There are significant barriers to entering the marketplace which keep most other companies out. It also means that most companies will be large and similar in size. The banking industry is an example.
In a monopoly, there is only one business operating in a sector without any competition. This may be based on ownership of resources or a patent. Monopolistic competition involves a market dominated by one large company but where there may be other smaller companies as well.Learn more about Business Resources
A business cycle is defined by fluctuations in economic activity that an economy experiences over a period of time. An average cycle lasts roughly 70 months with an average growth period of approximately 60 months and an average period of decline of about 11 months.Full Answer >
International business is important because it gives domestic companies access to new markets, potentially increasing sales and profitability. Operating internationally can also help a company lower expenses through direct access to cheaper materials and labor.Full Answer >
People engage in business for several reasons, but the most compelling reason for many is to earn a substantial income. Entrepreneurs have income limited only by the practical opportunities in the marketplace, as opposed to the salary maximum established by an employer.Full Answer >
Inventory, or specifically inventory management, is important for a business to ensure that the business is able to maximize potential sales and market share. Inventory plays a key role in business strategy as it represents a portion of the business's assets and one of its primary sources of revenue.Full Answer >