Forms of Business/ Market Structures Test

Oligopoly is a market structure with one very large firm

• True
• False

In perfect competition, the product is differentiated

• True
• False

If Nike and Adidas merge, it would be a _____________ merger

• horizontal
• vertical
• insane
• ladder

Public utilities are an example of a _______________ monopoly.

• technological
• natural
• government
• geographic

In which market structure is there the LEAST competition?

• Monopoly
• Oligopoly
• Monopolistic Competition
• Perfect Competition

Susan, Phil, Robert, and Martina are all lawyers. After several years of working for big firms, they decide to pool 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 

• partnership
• corporation
• sole proprietorship
• monopoly

Which type of business organization has the advantage of limited liability but the disadvantage of less control over business decisions?

• perfect competition
• partnership
• sole proprietorship
• corporation

An industry that is dominated by a few large firms is 

• monopolistic competition.
• a monopoly.
• perfect competition.
• an oligopoly.

Bernice 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/an

• partnership
• franchise
• corporation
• sole proprietorship

All of the following are features of perfect competition EXCEPT

• many buyers and sellers
• differentiated products
• buyers that are fully informed about price, quality, and availability of products.
• easy entry into & exit from the industry