Market Structures: Competition, Monopoly, and Oligopoly Explained
Market Structures: Competition, Monopoly, and Oligopoly
Perfect Competition
In a perfectly competitive market, a large number and dispersion of buyers and sellers prevent any of them from having a major influence on price.
- Many small merchants exist, so none will have any significant influence on the price of a certain good or service.
- The product is homogeneous throughout the market; therefore, it is indifferent for consumers to buy from one dealer or another.
- Buyers are well-informed about prices and
Corporate Investment Categories and Accounting Methods
Goal 1: Understand the Three Major Categories of Corporate Investment
- Three Categories of Investments in Securities
- Passive Investments
- Investments Made with the Intention to Exercise Significant Influence Over Another Corporation
- Significant influence may be indicated by:
- Joining the Board
- Participating in Policy Formulation and Decision Making
- Transactions Between the Two Companies
- Exchange of Personnel Management
- Technological Dependence
- In the absence of a clear distinction based on these factors, it
- Significant influence may be indicated by:
Accounting Framework: Annual Accounts, Principles & Elements
Conceptual Framework of Accounting: Annual Accounts
The annual accounts include: the balance sheet, the profit and loss account, statement of changes in equity, and a memory in SMEs. Annual accounts show a true and fair view of assets, financial position, and results of the company.
Requirements for Information in Annual Accounts
The information contained in the annual accounts must be true and relevant. Information is reliable when it is free of errors and must be integrated. The information must
Read MoreUnderstanding Macroeconomics: Key Concepts and Variables
Macroeconomics
Macroeconomics focuses on the study of the national and international economic situation. This branch of the economy is not interested in individual consumer behavior, but in changes in the consumption of the whole population. Economists use a number of variables to understand the situation of an economy and make comparisons with other countries. These variables, related to all economic activities, are often called macroeconomic variables and deal with the production and income of
Read MorePorter’s Five Forces: Analyzing Market Profitability
Porter’s Five Forces Model
Business Background
Objectives:
- Introduce a set of theoretical tools suited for analyzing and interpreting the drivers of the profitability of a specific market.
- Develop a conceptual framework to single out the potential sources of competitive advantage in a specific market.
- Compare different potential strategies for entering a market with respect to the competitive and environmental characteristics of the market.
- Identify the optimal short-run and long-run strategic positioning
Key Insights into Taxation: History, Principles, and Modern Trends
Taxation Fundamentals
- Concerning the window tax, please choose the right answer: The tax base was not well specified.
- Regarding the tax-to-GDP ratio for OECD countries, which sentence is true? High-income countries have, in general, a higher ratio of tax to GDP, and within them, those countries with a deeper welfare state tend to have higher ratios, like EU countries.
- Choose the right question: Nordic countries (Sweden, Denmark) tend to have a higher proportion of Social Security Contributions (SSC)