Unit 4 Business Org., Market types

Limited liability is one characteristic of the corporate form of business organization.

• True

• False

One disadvantage of a general partnership is each partners' responsibility for the acts of all other partners.

• True

• False

Investors in corporations have unlimited liability for the company's debts.

• true

• false

The dividends of stockholders in a corporation are subject to double taxation.

• true

• false

One of the principal reasons that companies merge is to diversify their product lines.

• true

• false

Market situations lacking one or more of the characteristics of perfect competition are called imperfect competition.

• true

• false

Perfect competition requires a market structure with freedom for firms to enter or leave the market.

• true

• false

Oligopoly is a market structure with one very large firm.

• true

• false

A condition of perfect competition is characterized by product differentiation.

• true

• false

Non-price competition is the use of advertising, giveaways, and other promotional campaigns to win customers.

• true

• false