Competition & Business Structure Quiz

What defines a Monopoly?

• Many firms with low market power

• A single seller or producer excluding competition

• A business owned by two or more people

• A market with high product differences

Which of the following is an informal business structure?

• Corporations

• Sole Proprietorships

• LLCs

• Limited Partnerships

Which business structure is typically more regulated?

• Informal Business Structures

• Formal Business Structures

• Sole Proprietorships

• General Partnerships

What is the most common form of business organization?

• Corporation

• Partnership

• Sole Proprietorship

• Limited Liability Company

What is a potential employment issue for sole proprietorships?

• Easy to find employees

• Difficult to find good employees

• High employee turnover

• Overstaffing

What is a common feature of all partners in a general partnership?

• Limited liability

• Full responsibility and liability

• No responsibility

• No liability

What is one of the financial advantages of a franchise?

• Unlimited financial assistance

• No financial assistance

• Some financial assistance

• Full financial independence

Who gains power after incorporation?

• Directors

• Employees

• Customers

• Suppliers

What is the purpose of purchasing stock in a corporation?

• To invest money into the company

• To buy products at a discount

• To receive free services

• To gain employment

Why might owners of corporations have little say in management?

• Due to the size and structure of the corporation

• Because they are not interested

• Because they are not allowed by law

• Due to lack of skills