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History, Other
8th -
12thgrade
Business Organizations and Market Structures
20 questions
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- 1. Multiple ChoiceIn a general partnership,the business continues even if one partner diespartners must pay specific business taxes on stock they issuepartners usually draw up legal papers called articles of partnership.partners are only liable for the business' debt up to the amount of their investment
- 2. Multiple ChoiceAn advantage of a corporation is thatowners pay fewer taxes than owners of other forms of business.the business is subject to little government regulation.owners have limited liability for debt.owners have direct and immediate control over daily management of the business.
- 3. Multiple ChoicePerfect competition is characterized bya large number of sellers and buyers.diverse products.sellers acting together to set prices.uninformed buyers and sellers.
- 4. Multiple ChoiceA monopoly that is based on the ownership or control of a manufacturing method, process, or other scientific advance is ageographic monopolynatural monopolygovernment monopolytechnological monopoly
- 5. Multiple ChoiceUnder perfect competition,products are similar but not identical.numerous restrictions prevent firms from entering the market.no seller can sell a product above the prevailing market price.a single seller can affect price.
- 6. Multiple ChoiceWhen a major car company lowers its prices, other car makers will probablymaintain existing prices.raise their prices.go out of business.lower their prices.
- 7. Multiple ChoiceA market structure in which one firm has a monopoly because of its location is anatural monopoly.geographic monopoly.technological monopoly.government monopoly.
- 8. Multiple ChoiceBarry and two associates have been operating a business that is not going well. Barry is stressed out because the company is over $200,000 in debt and he knows that if it goes out of business, he and his two associates will have to pay it out of their own pockets. It sounds like Barry and his two associates have apartnership.corporation.sole proprietorship.stock.
- 9. Multiple ChoiceSusan, Phil, Robert, and Martina are all lawyers. After several years of working for big firms, they decide to pull their resources and start their own law practice together. The four of them will make all their business decisions together and will share all of the profits and financial risk. Their new law firm is apartnershipcorporationsole proprietorshipmonopoly
- 10. Multiple ChoiceMr. Simpson is liable for all the debts of his company. Mr.Simpson has which type of business organization?sole proprietorshipmonopolyperfect competitioncorporation
- 11. Multiple ChoiceWhich market has no competition?perfect competitionoligopolymonopolymonopolistic competition
- 12. Multiple ChoiceWhich market structure is BEST indicated by the soda market?monopolypure competitionoligopolynatural monopoly
- 13. Multiple ChoiceIf Mark Etts expresses a desire to sell his corn at a local farmer's market, he must be aware that the product is standardized and that he will have no control over the price. The market structure he is MOST likely participating in ismonopolistic competitionoligopolyperfect competitionmonopoly
- 14. Multiple ChoiceRamon decided to open his own software business. He borrowed money from a bank to buy computers and office equipment, and he hired one assistant. What is one DISADVANTAGE of Ramon's type of business organization?limited liabilityease of start-upflexibilityunlimited liability
- 15. Multiple ChoiceWhich scenario is an example of a monopoly?A local water company is the sole provider of water for a small town.A dry cleaner specializes in environmentally friendly cleaning methods.A farmer produces green beans for sale at a farmer's market.A small number of cereal companies produce most of the cereal on the market.
- 16. Multiple ChoiceA market structure in which only one producer supplies a good that is in demand is called amonopoly.oligopoly.competition.monopolistic competition.
- 17. Multiple ChoiceWhich type of business organization has the advantage of limited liability but the disadvantage of less control over business decisions?perfect competitionpartnershipsole proprietorshipcorporation
- 18. Multiple ChoiceThe MOST LIKELY reason for an entrepreneur to start a new business isto make a profit.to risk financial failure.to create a new social benefit.to discover a new product.
- 19. Multiple ChoiceAn industry that is dominated by a few large firms ismonopolistic competition.a monopoly.perfect competition.an oligopoly.
- 20. Multiple ChoiceBernice owns her own local gift shop. She acquired the necessary loans to open it, assumes all the financial risk herself, and makes all the decisions. It sounds like Bernice's business is a/anpartnershipfranchisecorporationsole proprietorship
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