Unit 3 Test- Stock Market, Market Structures, Business Structures & Pricing

1. Which of the following terms describes a place where buyers and sellers do business?

• a. union shop
• b. outsourcing
• c. corporation
• d. market

2. A market with varied yet similar products and a very high level of competition among the many firms competing. What type of market structure does this scenario describe?

• a. perfect competition
• b. monopolistic competition
• c. oligopoly
• d. monopoly

3. A market with varied yet similar products and a very high level of competition among the many firms competing. What type of market structure does this scenario describe?

• a. perfect competition
• b. monopolistic competition
• c. oligopoly
• d. monopoly

4. This market structure has the highest level of competition, many producers, and identical products. The price is set by equilibrium. What type of market structure does this scenario describe?

• a. perfect competition
• b. monopolistic competition
• c. oligopoly
• d. monopoly

5. Rank the market structures in order from MOST to LEAST competitive:

• a. Monopoly – Oligopoly – Monopolistic Competition – Perfect Competition
• b. Oligopoly – Monopoly – Perfect Competition – Monopoly
• c. Perfect Competition – Monopoly – Oligopoly – Monopolistic Competition
• d. Perfect Competition – Monopolistic Competition – Oligopoly – Monopoly

6. Law firms are frequently organized this way; two or more owners split profits and losses.

• a. Sole proprietorship
• b. Partnership
• c. Corporation
• d. Franchise

7. The majority of small businesses in the US use this business model. Mrs. B's business was this form of business with one owner.

• a. Sole proprietorship
• b. Partnership
• c. Corporation
• d. Franchise

8. If you wanted to open one of these business organizations, you would purchase exclusive trademark rights and policies from a parent company. Then you would open a brick and mortar recognizable to the public because it’s already an established brand.

• a. Sole proprietorship
• b. Partnership
• c. Corporation
• d. Franchise

9. Which is NOT a basic type of business organization?

• a. Sole proprietorship
• b. Partnership
• c. Corporation
• d. retail

10. What is a disadvantage of partnerships?

• a. ease of formation
• b. owners share responsibilities
• c. limited liability
• d. possibility of personality conflict