Market Structures 2024

Hey there, music enthusiasts! PJ, Luke, and Mohammed are enjoying Lorde's popular track 'Royals'. The lyrics go like this: But which of the following is the correct lyric from the song? A. And we'll never be royals B. And we'll never be loyal C. And we'll never be rivals D. And we'll never be trials

• A. And we'll never be royals

• B. And we'll never be loyal

• C. And we'll never be rivals

• D. And we'll never be trials

Imagine you're helping Brooke and Jake start a new tech startup. Which type of business is considered its own legal entity, separate from its owners, in the eyes of the law and tax system?

• corporation

• mom & pop stores

• non-profit

• sole proprietorship

Imagine you're in a lively debate with Blaze, Arianna, and Luke about big ideas! How would you explain how the economic concept of capitalism is similar to the political concept of democracy?

• they both involve individual's ability to make choices

• they both have a lot of government involvement

• they both allow people to vote on who will be CEO of corporations

• they both try to limit people's ability to buy and sell on the market

Imagine you're a top executive at a major tech company. Jake, Riley, and Brooke are curious: In the context of the shareholder theory, what should be the central focus of your management decisions?

• Enhancing shareholder wealth

• Creating value for all stakeholders

• Allowing people to vote on who will be CEO of corporations

• Maximizing employee satisfaction

Imagine you're a business leader like Natalie. Besides just making money, what other important aspects should you consider according to the stakeholder theory?

• Social and environmental impacts

• Cutting costs

• Employee satisfaction

• Maximizing shareholder value

Imagine you're a business strategist like Brooke. Based on the following diagram, which realistic event would belong in Box 1?

• CVS buys out rival Rite Aid on Hopkins Road to better compete with Walgreens

• CVS merges with Aetna health insurance company to control more of the supply chain

• CVS buys out Honda Motor Company to diversify their business model

Imagine you're in a business strategy class with Brooke, Ella, and Annie. You're analyzing a case where CVS is making strategic moves. In the scenario described, which event realistically fits into Box 3 of your case study diagram?

• CVS buys out rival Rite Aid on Hopkins Road to better compete with Walgreens

• CVS merges with Aetna health insurance company to control more of the supply chain

• CVS buys out Honda Motor Company to diversify their business model

Imagine you're Luke, a budding business strategist. You're analyzing The Walt Disney Company, known for its blockbuster movies, its own streaming service, thrilling amusement parks, a stake in ESPN, ownership of an NHL team, acquisition of Pixar, and publishing news magazines. What type of business structure has Disney formed?

• horizontal merger

• vertical merger

• stock merger

• conglomerate merger

PJ, Blaze, and Natalie are discussing in their economics class: Why are mergers often criticized by consumer advocacy groups?

• they help mom & pop stores

• they decrease prices overall

• they allow more supply to hit the market

• they lead to decreased competition

Ella and Arjan are discussing in their business class. Ella believes mergers are favored by corporate boards and CEOs because they support local businesses, while Arjan argues it's because they help reduce expenses and streamline operations. Who is correct according to most business strategies?

• Ella, because they support local businesses

• Ella, because they decrease prices overall

• Riley, because they allow more demand to hit the market

• Arjan, because they help reduce expenses and streamline operations