The theory of entrepreneurship and the economic theory of the firm are closely related. Entrepreneurship involves judgment and the use of assets to create new ways of producing goods. Entrepreneurs need firms to carry out their functions, as firms provide the necessary assets. The decision-making process of entrepreneurs is complicated by the fact that assets are different from each other. By owning assets, entrepreneurs can experiment with new ideas at a low cost. The existence and boundaries of firms are determined by the limits of the market for judgment and the need for experimentation in using diverse assets.