Business Structures and Market Types Quiz

What is the main advantage of a sole proprietorship?

• Double taxation

• Simple to start up and stop

• Shared profits

• Limited liability

In which market type does only one seller control the supply of a product?

• Monopolistic competition

• Oligopoly

• Pure competition

• Monopoly

What is an example of a natural monopoly?

• Soda industry

• Clothing store

• Water company

• Fast food restaurant

What is the main advantage of a limited liability company?

• Reduced liability if the business fails

• Widespread brand recognition

• Ability to sell shares of stock to the public

• No double taxation

In which market type do many sellers offer similar but not standardized products?

• Pure competition

• Monopolistic competition

• Monopoly

• Oligopoly

What is the main disadvantage of a corporation?

• Limited liability

• Shared profits

• Double taxation

• Simple to start up and stop

What is the most direct way businesses compete in a monopolistic competitive market?

• Perfectly elastic demand

• Non-price competition

• Collusion

• Price competition

What is the main factor that influences a business owner's choices about wages and benefits?

• Size of the company

• Worker productivity

• Supply and demand for the job

• Training provided by employer

In which market type is there limited control of prices and freedom to enter or exit the market?

• Oligopoly

• Pure competition

• Monopolistic competition

• Monopoly

What is an example of vertical consolidation?

• A printing company buying a logging company

• A water company controlling the supply of water

• A clothing store offering unique products

• A soda company dominating the market