Bus. Org & Mkt. Structures

Choose the correct analogy regarding business organizations and market structures.

• a market structure is like a baseball team

• a market structure is like a baseball field

• a business organization is like a baseball field

• a business organization is where businesses play

Which of the following market structures has the least barriers to entry? (a)  

• monopoly
• monopolistically competitive
• pure competition
• oligopoly

In which business organization do owners give up the least responsibility?

• corporation

• partnership

• sole proprietorship

• monopoly

A sole proprietorship has ​ (a)   liability and​ (b)   life. Owners ​ (c)   lose personal assets and the business ​ (d)   last forever.

• unlimited
• limited
• can
• cannot

Match the following

• owners are responsible for each other's actions

• double taxation

• represents partial ownership in a company

• Sole Proprietorship

• least protection for owners

• stock

• can raise the most capital

• partnership

• IRS collects from the business and its owners

• corporation

In a ​ (a)   competitive market, producers are called price takers because they have ​ (b)   control over pricing. This in contrast to a monopolistically competitive market where producers have ​ (c)   control over pricing because products are (d)   similiar.

• purely
• little
• more
• less

Which of the following is a benefit of a sole proprietorship?

• Unlimited liability

• Limited life

• easy to start

• protection from creditors

The cruise ship industry is probably which type of market structure.

• purely competitive

• monopolistically competitive

• oligopoly

• monopoly

A new mom decides to stay home with her newborn and start a babysitting business. In just a few days, she is ready to go with 5 families paying for her services. In which two types of markets could she probably be starting?

• monopoly

• oligopoly

• purely competitive

• monopolistically competitive

In a monopoly, it is ​ (a)   for producers to make a profit because they have ​ (b)   competition. They are considered price ​ (c)   because they can set prices as ​ (d)   as they want them.

• easier
• less
• makers
• high