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Worksheets

Market Structure /Business Organization

Total questions: 20

Worksheet time: 40mins

Name
Class
Date
1.

Which of the following industries is an example of a monopoly?

a)

utilities/water

b)

departments stores

c)

auto industry

d)

commercial airlines

2.

When management does not allow the workers to work until an agreement is reached on a new contract.

a)

lockout

b)

boycott

c)

market failure

d)

court injunction

3.

A negative externality is...

a)

the producers making decision that harm the buyers.

b)

the buyers not purchasing enough of a product.

c)

an objective 3rd party ruling against the labor union.

d)

a 3rd party being negatively affected by the production of a good/service.

4.

It is illegal for oligopolies to exert some control over price through...

a)

collusion.

b)

standardized products.

c)

price leadership.

d)

conglomerates.

5.

Which of the following is not a characteristic of monopolistic competition?

a)

products are very similar so there must be product differentiation

b)

very competitive

c)

lots of advertising

d)

identical products

6.

Which of the following is not a characteristic of an oligopoly?

a)

many sellers

b)

not as much competition - firms have some control over prices

c)

lots of advertising

d)

many barriers to entry

7.

Stockholders who have a say in how the company is run (voting rights) own...

a)

common stock.

b)

preferred stock.

c)

dividends.

d)

corporate bonds.

8.

Which of the following may be a negative externality resulting from the expansion of a local airport?

a)

There is a rise in retail business in the area.

b)

Additional employment is needed at the airport.

c)

There is an expected benefit for a third party not directly involved in the expansion project.

d)

The airport increases noise pollution in the area.

9.

Which of the following is an advantage of a corporation?

a)

limited liability

b)

easy to form

c)

taxed only once

d)

shared losses

10.

Which of the following is not an advantage of a sole proprietorship?

a)

easy to form

b)

taxed only once

c)

you retain all of the profits

d)

unlimited liability

11.

Preferred stock is guaranteed to earn dividends, but does not have voting rights.

a)

Ture

b)

False

12.

Collusion among firms in an industry is most likely to occur under conditions of...

a)

perfect competition.

b)

oligopoly.

c)

monopolistic competition.

d)

monopoly.

13.

Which of the following is an example of a public good?

a)

shopping mall

b)

highway

c)

professional sporting event

d)

factory

14.

A merger between for or more companies producing or marketing different/unrelated products is referred as a(n)...

a)

conglomerate.

b)

vertical merger.

c)

corporation.

d)

horizontal merger.

15.

A merger that joins companies that are at different steps of producing the same product is called a...

a)

vertical merger.

b)

conglomerate.

c)

horizontal merger.

d)

corporation.

16.

A merger that joins companies that produce very similar products is called...

a)

conglomerate.

b)

vertical merger.

c)

horizontal merger.

d)

corporation.

17.

___ is when 2 sides listen to suggestions from an objective third party in hopes of reaching a compromise.

a)

Mediation

b)

Arbitration

c)

Lockout

d)

Collective bargaining

18.

How can Management force labor to return to work?

a)

lockout

b)

arbitration

c)

injunction

d)

boycott

19.

The three most common forms of business organizations in the U.S. are all of the following except...

a)

sole proprietorships.

b)

partnerships.

c)

corporations.

d)

conglomerates.

20.

A bond is a loan to a company that is paid back with ____; stocks are shared ownership in a corporation that earns ___.

a)

dividends; interest

b)

interest; dividends

c)

dividends; capital gains

d)

capital gains; interest