Econ Ch 8 and 9 (Bus Org and Mkt Str)

Question 1

An example of antitrust legislation is the

Accepted Answer

Clayton Act

Question 2

Which is a situation in which the initial costs of investment are small?

Accepted Answer

easy entry and exit

Question 3

Which is a business owned and operated by one person?

Accepted Answer

sole proprietorship

Question 4

Which is a share of ownership of a corporation?

Accepted Answer

stock

Question 5

Laws that prevent new monopolies from forming and break up those that exist are called...

Accepted Answer

antitrust legislation

Question 6

In perfect competition, prices are controlled by

Accepted Answer

supply and demand

Question 7

A company with exclusive rights to provide a public good or service is a

Accepted Answer

natural monopoly

Question 8

A person who starts new businesses and assumes the risk of business in order gain profits is...

Accepted Answer

an entrepreneur

Question 9

Which is a business that two or more individuals own and operate?

Accepted Answer

partnership

Question 10

Which is a market situation where a single supplier makes up an entire industry?

Accepted Answer

monopoly

Question 11

Which is a portion of a corporation's profits paid to its stockholders?

Accepted Answer

dividend

Question 12

Which is a partnership set up to accomplish a specific task for a short period of time?

Accepted Answer

joint venture

Question 13

Manufacturers' use of modifications in quality and features to distinguish products is...

Accepted Answer

product differentiation

Question 14

Which is a beginning business?

Accepted Answer

startup

Question 15

In a partnership, the partners

Accepted Answer

share the profits or losses

Question 16

Holders of preferred stock are guaranteed:

Accepted Answer

a certain amount of dividend each year

Question 17

In a perfectly competitive market, there would be

Accepted Answer

numerous buyers and sellers

Question 18

In a limited partnership, the limited partners

Accepted Answer

only contribute funds or property to the business

Question 19

Which is when an inventor has the exclusive right to make use or sell an invention?

Accepted Answer

patent

Question 20

Which is when a business sells the right to use its name and sell its products?

Accepted Answer

franchise

Question 21

The industry in the U.S. that most closely approaches perfect competition is

Accepted Answer

agriculture

Question 22

An owner is personally and fully responsible for all losses and debts of a business with...?

Accepted Answer

unlimited liability

Question 23

The most common TYPE of business organization, accounting for 70% of all businesses is

Accepted Answer

sole proprietorship

Question 24

The extent to which competition prevails in the market is...

Accepted Answer

market structure

Question 25

Obstacles to competition that prevent others from entering the market are called...

Accepted Answer

barriers to entry

Question 26

When two or companies in the same business combine, the transaction is

Accepted Answer

a horizontal merger

Question 27

Which is a legal combination of two or more companies that become one corporation?

Accepted Answer

merger

Question 28

Which is an extra supply of items used in business?

Accepted Answer

inventory

Question 29

Which describes when low production costs resulting from the large size of output?

Accepted Answer

economies of scale

Question 30

Which is an industry dominated by a few suppliers who exercise some control over price?

Accepted Answer

oligopoly

Question 31

A market situation where there are numerous buyers and sellers and no one can affect price is..

Accepted Answer

perfect competition

Question 32

Natural monopolies are businesses that

Accepted Answer

provide utilities and public transportation

Question 33

Which is a business owned by many people, but treated by law as a single person?

Accepted Answer

corporation

Question 34

Which federal agency regulates the sale of stocks, bonds and other investments?

Accepted Answer

Securities and Exchange Commission

Question 35

Which is an arrangement among business to reduce competition by controlling the price?

Accepted Answer

cartel

Econ Ch 8 and 9 (Bus Org and Mkt Str)

Questions 35

Econ Ch 8 and 9 (Bus Org and Mkt Str)

Questions 35