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WorksheetsBusiness Organizations and Market Structures
Total questions: 35
Worksheet time: 21mins
What are the three types of business organizations?
sole proprietorship, partnership, and corporation
government agency, trust, and association
franchise, joint venture, and limited partnership
limited liability company, cooperative, and non-profit organization
Which type of business organization is owned and operated by a single individual?
partnership
sole proprietorship
corporation
limited liability company
What is the main advantage of a partnership?
Limited liability
Centralized decision-making
Higher tax rates
Shared responsibility and workload
What is a corporation?
a government agency.
a legal entity that is separate and distinct from its owners.
a non-profit organization.
a type of partnership.
What is the difference between a monopoly and a perfect competition?
Monopoly is a market structure with many sellers, while perfect competition has one seller.
Monopoly is a market structure with no sellers, while perfect competition has many sellers.
Monopoly is a market structure with one seller, while perfect competition has no sellers.
Monopoly is a market structure with one seller, while perfect competition has many sellers.
How many sellers are in a monopoly?
Which TWO market structures have high barriers to entry?
perfect competition
oligopoly
monopoly
monopolistic competition
Who controls the prices in perfect competition?
Consumers
Sellers/firms
The Government
How does a monopoly affect consumer choice and competition?
restricts consumer choice and reduces competition.
increases consumer choice and encourages competition.
no effect on consumer choice and competition.
restricts consumer choice and promotes competition.
What is the difference between a monopoly and an oligopoly?
monopoly has low barriers to entry; oligopoly has high barriers to entry
monopoly has competition; oligopoly does not
monopoly has cartels; oligopoly has price wars
monopoly has one seller; oligopoly has a few
In perfect competition, are there any barriers to entry for new firms?
Yes
Sometimes
Only for large firms
No
What is product differentiation in monopolistic competition?
The practice of selling identical products at different prices in different markets.
The strategy of making a product or service appear distinct from others in the market through branding, design, quality, or other features.
The process of reducing the price of a product to attract more customers.
The act of copying the design or features of a competitor's product.
What are the advantages of a corporation as a business organization?
Unlimited liability, inability to raise capital, limited existence, integration of ownership and management
Limited liability, inability to raise capital, limited existence, integration of ownership and management
Unlimited liability, ability to raise capital, limited existence, integration of ownership and management
Limited liability, ability to raise capital, perpetual existence, separation of ownership and management
An industry that is dominated by a few large firms is
monopolistic competition.
a monopoly.
perfect competition.
an oligopoly.
There are many sellers of blue jeans. Each blue jean seller makes their product slightly different to set it apart from others. There is free entry and exit into the blue jean market. Which market structure does this describe?
Perfect Competition
Oligopoly
Monopoly
Monopolistic Competition
What is the difference between a monopoly and a perfect competition?
Monopolies have no control over prices and have free entry and exit of firms.
Monopolies and perfect competition have the same control over prices and output.
Perfect competition has control over prices and can restrict output, while monopolies have no control over prices and have free entry and exit of firms.
Monopolies have control over prices and can restrict output, while perfect competition has no control over prices and has free entry and exit of firms.
In monopolistic competition, what type of differentiation helps firms sell their products over others?
Price differentiation
Product differentiation
Market differentiation
Advertising differentiation
Why are geographic monopolies common in small towns?
Small towns can't afford police security for new shops.
Small towns usually have just one seller of a given item.
The residents of small towns vote against having new shops.
The residents of small towns don't want jobs from new shops.
A technological monopoly involves:
Stealing plans from another business.
Being the only seller in a small town.
Having a patent for a new invention or scientific process.
Having a few sellers in the market.
What kind of monopoly does the granting of patents encourage?
Natural Monopoly
Technological Monopoly
Government Monopoly
Geographic Monopoly
Under pure competition, products are
always cheap
differentiated
accurately priced
identical
What kind of monopoly often provides public goods?
Natural Monopoly
Geographic Monopoly
Government Monopoly
Technological Monopoly
A Dollar General opens up on the side of a mountain. Since there are no other stores around it, they are a monopoly in the area. What type of monopoly is this?
Geographical
Technological
Natural
Government
Chick Fil A claims their chicken sandwich tastes better than Popeyes' chicken sandwich. This is an example of...
barrier to entry
product differentiation
patent
copyright
All of the houses in Glynn County are serviced by Georgia Power for their electricity. What type of monopoly is this?
Geographic Monopoly
Technical Monopoly
Natural Monopoly
Government Monopoly
TRUE OR FALSE: In perfect (or pure) competition, sellers sell IDENTICAL products.
True
False
Trent is opening a shoe store. He needs money to rent a retail space, buy shoes to stock in the store, pay employees, and make advertisements. These are examples of...
Barriers to entry
Start-up costs
Corporate taxes
Opportunity costs
