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All the economic activities related to production and exchange of goods or services for an economic return.
BUSINESS SECTORS
The business sector consists of two main subsectors: - Industrial sector - tertiary or service sector
CLASSIFICATION OF BUSINESS
Business enterprises can be classified as under 1. Business which produce goods 2. Businesses which produce services 3. Businesses which distribute goods 4. Businesses which facilitate distribution of goods 5. Businesses which deal in Finance & Financial Services
CLASSIFICATION OF INDUSTRIES
Industry consists of all those firms which produce goods and services. It is that part of business which creates form utility. Industry may be classified on the basis of the nature of activity, on the competitive structure, use of the output, ownership category, size
Perfect Competition
Following are the features of a perfect Competition 1. There are very large number of buyers and sellers. 2. All the buyers and sellers are small. 3.The products are homogenous . 4. There is no entry or exit barrier. 5.Buyers and sellers are perfectly knowledgeable. 6. There is complete mobility of factors of production. 7. There is no transport cost.
Imperfect Competition
Following types of competitive structures are included in this 1. Monopolistic Competition 2. Monopoly 3. Duopoly. 4. Oligopoly.
Monopolistic Competition
In a monopolistic competition, there are a large number of sellers, but the products are differentiated. No seller is large enough to influence the competition.
Monopoly
In monopoly , there is a single firm controlling the supplies. There may be a large number of buyers or few buyers. The firm has full control over the pricing.
Oligopoly
There are a large number of buyers but only a few sellers. There is little or no product differentiation.