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Econ Unit 3:Market Structures and Business Orgs Flashcards | StudBud
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Econ Unit 3:Market Structures and Business Orgs
Econ Unit 3:Market Structures and Business Orgs
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Review for Unit 3: Market Structures and Business Organizations
Flashcards
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Questions
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Answers
1
The MOST LIKELY incentive for entrepreneurs to start a new business is
to create a new social benefit.
to risk financial failure.
to make a profit.
to discover a new patent.
2
Corporations are defined as “entities” because they
have a legal identity separate from those of their owners.
sell products in the US
require a certificate of corporation.
may merge in various ways.
3
If a general partnership fails, who is responsible for the debts?
all of the partners
no one
anyone who works for the partnership
only the senior partner
4
Unincorporated business with two or more owners
Business Franchise
Corporation
Partnership
Sole Proprietorship
5
What percentage of businesses are sole proprietorships?
60%
25%
75%
40%
6
Mr. Simpson is liable for all the debts of his company. Mr. Simpson has which type of business?
sole proprietorship
monopoly
corporation
conglomerate
7
Which of the following is NOT a form of nonprice competition?
discounts/sales
advertising
location
physical characteristics
8
When Demand increases the...
curve shifts right, prices rise
curve shifts left, prices fall
curve shifts left, prices rise
curve shifts right, prices fall
9
You are looking for a job with many fringe benefits. You therefore probably want to work for a
nonprofit organization.
general partnership.
sole proprietorship.
corporation.
10
What kind of market runs most efficiently when one large firm supplies all of the output?
a natural monopoly
perfect competition
a network
imperfect competition
11
In a publicly held corporation...
stockholders rarely trade their stocks.
family members only can hold stock.
a large number of stockholders can buy and sell stock.
stocks are not usually traded at stock exchanges.
12
Which of the following is a disadvantage of a sole proprietorship?
high taxes
difficult to start up
legal constraints
lack of permanence
13
Market structure where many firms supply an identical product
Monopolistic Competition
Perfect Competition
Monopoly
Oligopoly
14
What is the fundamental economic problem all societies face?
Scarcity
Low wages
Shortages
High Prices
15
Owners pay royalties to a parent company
Sole Proprietorship
Partnership
Business Franchise
Corporation
16
How much control over price do companies in a perfectly competitive market have?
none
very little
some
total
17
When supply increases, the...
Curve shifts right, prices fall
curve shifts right, prices rise
curve shifts left, prices rise
curve shifts left, prices fall
18
Which market structure has the lowest number of suppliers?
perfect competition
oligopoly
monopolistic competition
monopoly
19
What is the definition of an oligopoly?
eight to ten firms producing 90 percent of the output
one firm producing 95 percent of the output
eight to ten firms producing most of the output
two to four firms producing most of the output
20
Market structure where only a few (2 to 4) businesses supply a good or service.
Monopoly
Oligopoly
Monopolistic Competition
Perfect Competition
21
Georgia Power and the Macon Water Authority are both examples of
Patent Monopolies
Oligopolies
Natural Monopolies
Partnerships
22
Market where many businesses provide a similar (not same) product or service
Perfect Competition
Monopoly
Oligopoly
Monopolistic Competition
23
Which business organization makes the most profits?
Franchises
Corporations
Sole Propritorships
Partnerships
24
A disadvantage of this business type is the potential for conflict between owners
Corporation
Business Franchise
Partnership
Sole Proprietorship
25
Your uncle owns a convenience store that has branches nationwide. His store is an example of a
business franchise.
multinational.
consumer cooperative.
professional organization.
