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Traits of Private Enterprise

Total questions: 11

Worksheet time: 9mins

Name
Class
Date
1.

Private enterprise

a)

A. is business ownership by ordinary people

b)

B. is also known as free enterprise

c)

C. is a freedom in a market-oriented economy

d)

B and C only

e)

All of the above

2.

If a _______ is granted, you have the exclusive rights to make, use or sell that invention.

a)

A. trademark

b)

B. trade secret

c)

C. copyright

d)

D. patent

3.
  1. An example of a trademark
a)

A. is changing management decisions with voting rights

b)

B. is the golden arches used by McDonalds franchises

c)

C. the color red used on all Raisin' Cains signage

d)

All of the above

4.

Maria wrote a song in 2017. In 2019 a band recorded her song without her permission and it went #1 on the music charts. Maria is now suing the band for a _________ violation.

a)

A. patent

b)

B. trade secret

c)

C. copyright

d)

d. trademark

5.

"All things being equal, consumers will tend to buy products that have the lowest cost." This is an example of

a)

price competition

b)

nonprice competition

c)

product quality consideration

d)

product scarcity

6.

"This product has had highest customer satisfaction in the industry for the last four years." This is an example of

a)

A. price competition

b)

B. nonprice competition

c)

C. market share

d)

D. product scarcity

7.

Monopolies

a)

A. are encouraged in a market-oriented economy

b)

B. encourage price competition and product innovation

c)

C. have exclusive control over a product

d)

All of the above

8.

Barry put $23,000 of his money into a new barber shop he is opening. He also put a mortgage on his home to obtain $50,000 in additional financing. The potential for losing this money is called _______________ .

a)

A. price competition

b)

B. nonprice competition

c)

C. business risk

d)

D. supply and demand

9.

1 million widgets is the maximum produced in any year with retail prices running $2.98 - $4.06. A manufacturer has developed a new process that will increase market supply to 2 million. Which happened the next year?

a)

A. Prices increased to $3.73 - $5,22

b)

B. Prices remained virtually unchanged at $2,90 - $4.12

c)

C. Prices decreased to $2.25 - $3.55

d)

D. Prices doubled to $6.00 - $10.50

10.

In 1973 the Tonight Show host, Johnny Carson, said "There is an acute shortage of toilet paper." Even though it was a joke this caused

a)

A. panic buying of toilet paper

b)

B. demand that exceeded supply leading to shortages throughout the US

c)

C. no impact on toilet paper demand or supply

d)

A and B

e)

All the above

11.

When a company works to lower costs and maximize sales they are trying to increase

a)

A. Assets

b)

B. Liabilities

c)

C. Profits

d)

D. Competition