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WorksheetsBusiness Organizations and Market Structures
Total questions: 20
Worksheet time: 10mins
Name
Class
Date
1.
In a general partnership,
a)
the business continues even if one partner dies
b)
partners must pay specific business taxes on stock they issue
c)
partners usually draw up legal papers called articles of partnership.
d)
partners are only liable for the business' debt up to the amount of their investment
2.
An advantage of a corporation is that
a)
owners pay fewer taxes than owners of other forms of business.
b)
the business is subject to little government regulation.
c)
owners have limited liability for debt.
d)
owners have direct and immediate control over daily management of the business.
3.
Perfect competition is characterized by
a)
a large number of sellers and buyers.
b)
diverse products.
c)
sellers acting together to set prices.
d)
uninformed buyers and sellers.
4.
A monopoly that is based on the ownership or control of a manufacturing method, process, or other scientific advance is a
a)
geographic monopoly
b)
natural monopoly
c)
government monopoly
d)
technological monopoly
5.
Under perfect competition,
a)
products are similar but not identical.
b)
numerous restrictions prevent firms from entering the market.
c)
no seller can sell a product above the prevailing market price.
d)
a single seller can affect price.
6.
When a major car company lowers its prices, other car makers will probably
a)
maintain existing prices.
b)
raise their prices.
c)
go out of business.
d)
lower their prices.
7.
A market structure in which one firm has a monopoly because of its location is a
a)
natural monopoly.
b)
geographic monopoly.
c)
technological monopoly.
d)
government monopoly.
8.
Barry and two associates have been operating a business that is not going well. Barry is stressed out because the company is over $200,000 in debt and he knows that if it goes out of business, he and his two associates will have to pay it out of their own pockets. It sounds like Barry and his two associates have a
a)
partnership.
b)
corporation.
c)
sole proprietorship.
d)
stock.
9.
Susan, Phil, Robert, and Martina are all lawyers. After several years of working for big firms, they decide to pull their resources and start their own law practice together. The four of them will make all their business decisions together and will share all of the profits and financial risk. Their new law firm is a
a)
partnership
b)
corporation
c)
sole proprietorship
d)
monopoly
10.
Mr. Simpson is liable for all the debts of his company. Mr.Simpson has which type of business organization?
a)
sole proprietorship
b)
monopoly
c)
perfect competition
d)
corporation
11.
Which market has no competition?
a)
perfect competition
b)
oligopoly
c)
monopoly
d)
monopolistic competition
12.
Which market structure is BEST indicated by the soda market?
a)
monopoly
b)
pure competition
c)
oligopoly
d)
natural monopoly
13.
If Mark Etts expresses a desire to sell his corn at a local farmer's market, he must be aware that the product is standardized and that he will have no control over the price. The market structure he is MOST likely participating in is
a)
monopolistic competition
b)
oligopoly
c)
perfect competition
d)
monopoly
14.
Ramon decided to open his own software business. He borrowed money from a bank to buy computers and office equipment, and he hired one assistant. What is one DISADVANTAGE of Ramon's type of business organization?
a)
limited liability
b)
ease of start-up
c)
flexibility
d)
unlimited liability
15.
Which scenario is an example of a monopoly?
a)
A local water company is the sole provider of water for a small town.
b)
A dry cleaner specializes in environmentally friendly cleaning methods.
c)
A farmer produces green beans for sale at a farmer's market.
d)
A small number of cereal companies produce most of the cereal on the market.
16.
A market structure in which only one producer supplies a good that is in demand is called a
a)
monopoly.
b)
oligopoly.
c)
competition.
d)
monopolistic competition.
17.
Which type of business organization has the advantage of limited liability but the disadvantage of less control over business decisions?
a)
perfect competition
b)
partnership
c)
sole proprietorship
d)
corporation
18.
The MOST LIKELY reason for an entrepreneur to start a new business is
a)
to make a profit.
b)
to risk financial failure.
c)
to create a new social benefit.
d)
to discover a new product.
19.
An industry that is dominated by a few large firms is
a)
monopolistic competition.
b)
a monopoly.
c)
perfect competition.
d)
an oligopoly.
20.
Bernice owns her own local gift shop. She acquired the necessary loans to open it, assumes all the financial risk herself, and makes all the decisions. It sounds like Bernice's business is a/an
a)
partnership
b)
franchise
c)
corporation
d)
sole proprietorship
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