Business Organizations and market structure Worksheet

What is product differentiation?

• Unique product features
• Limited product options
• Identical products in the same industry
• Real or imagined differences between competing products

Which market structure has product differentiation and easy entry and exit?

• Monopolistic competition
• Perfect competition
• Oligopoly
• Monopoly

Which of the following is an example of an oligopoly?

• Natural gas
• Postal service
• Prescription drugs
• Automobiles

What is a business that is owned by stockholders and recognized as a separate entity called?

• Corporation
• Sole proprietorship
• Partnership
• Cooperative

Which market structure is characterized by many small firms, homogenous products, and no market power?

• Monopolistic competition
• Perfect competition
• Oligopoly
• Monopoly

What is a disadvantage of a partnership compared to a corporation?

• Limited liability
• Unlimited liability
• Ability to raise capital
• Combined business skills and knowledge

What is an advantage of a sole proprietorship?

• Combined business skills and knowledge
• Easiest to start
• Limited liability
• Ability to raise capital

What is a drawback of a sole proprietorship?

• Combined business skills and knowledge
• Ability to raise capital
• Unlimited liability
• Limited liability

What is a disadvantage of a corporation?

• Limited liability
• Ability to raise capital
• Double taxation
• Unlimited life

Which market structures are considered price makers?

• Oligopoly and monopoly
• Perfect competition and monopolistic competition
• Monopolistic competition and oligopoly
• Perfect competition and oligopoly