Econ - Micro Brief Review

Question 1

Producer of automobiles buys a large rental car company is an example of

Accepted Answer

vertical merger

Question 2

Liability for all the debts in the company is an example of what type of business organization?

Accepted Answer

sole proprietorship

Question 3

Splitting the management and ownership into 2 functions is an example of

Accepted Answer

corporation

Question 4

Sharing the risks and profits to form an unincorporated business is an example of what?

Accepted Answer

partnership

Question 5

Few number of firms, a lot of control over prices and very difficult to create

Accepted Answer

oligopoly

Question 6

There is one firm, total control over price & high barriers which makes it difficult to create

Accepted Answer

monopoly

Question 7

An automobile manufacturer buys a baseball team is an example of

Accepted Answer

conglomerate merger

Question 8

Many small firms, no control over prices and not that hard to create

Accepted Answer

perfect competition

Question 9

Many small firms, some control over prices and not that hard to create

Accepted Answer

monopolistic competition

Question 10

A commercial banks buys a credit union is an example of

Accepted Answer

horizontal merger

Questions 10