Competition and Market Structures

What is a market structure where a few large companies control most of the industry and its prices?

• Monopoly

• Oligopoly

• Perfect competition

• Monopsony

Which business structure protects its owners from personal liability while allowing flexibility in management and taxation?

• Sole proprietorship

• Partnership

• Corporation

• Limited liability company (LLC)

What is it called when two companies at different stages of production combine to improve efficiency and reduce costs?

• Horizontal integration

• Vertical integration

• Conglomerate merger

• Joint venture

What are rules created to prevent companies from unfairly limiting competition in the market?

• Trade regulations

• Antitrust laws

• Labor laws

• Environmental regulations

What is the term for situations where the government is the sole provider of a service or product, often because it is essential for public welfare?

• Monopoly

• Public enterprise

• Nationalization

• Natural monopoly

What is a business model where an individual can operate a branch of a larger company using its brand and system?

• Franchise

• Partnership

• Corporation

• Cooperative

What type of business is owned and run by one person who receives all profits and is responsible for all debts?

• Corporation

• Partnership

• Sole proprietorship

• Limited liability company (LLC)

What is it called when two companies in the same industry join together to increase their market share and reduce competition?

• Vertical integration

• Horizontal merger

• Conglomerate merger

• Joint venture

What is a situation where one company is the only provider of a product or service, giving it complete control over the market?

• Oligopoly

• Monopoly

• Monopsony

• Duopoly

What is a basic good used in commerce that is interchangeable with other goods of the same type, like oil or wheat?

• Commodity

• Asset

• Security

• Equity