Business Organizations and Market Structures

Front

In a general partnership, what do partners usually draw up?

Back

legal papers called articles of partnership.

Front

An advantage of a corporation is that

Back

owners have limited liability for debt.

Front

Perfect competition is characterized by

Back

a large number of sellers and buyers.

Front

A monopoly that is based on the ownership or control of a manufacturing method, process, or other scientific advance is a

Back

technological monopoly

Front

Under perfect competition, no seller can sell a product above the prevailing market price.

Back

This means that prices are determined by the market and sellers must accept the market price.

Front

When a major car company lowers its prices, other car makers will probably

Back

lower their prices.

Front

A market structure in which one firm has a monopoly because of its location is a

Back

geographic monopoly.

Front

Barry 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 a

Back

partnership.

Front

Susan, 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 a 

Back

partnership

Front

Mr. Simpson is liable for all the debts of his company. Mr. Simpson has which type of business organization? Options: sole proprietorship, monopoly, perfect competition, corporation

Back

sole proprietorship