Business Structures and Market Competition Quiz

What is a sole proprietorship?

• A firm owned by two or more people

• A firm owned by stockholders

• A firm owned by the government

• A firm owned by only one person

What does unlimited liability mean?

• The responsibility is limited to the shares owned

• The business is not liable for any debts

• The owner is personally responsible for all debts

• The owner is not responsible for any debts

Which market structure is characterized by a large number of buyers and sellers of an identical product?

• Monopolistic Competition

• Oligopoly

• Pure Competition

• Monopoly

What is the main characteristic of a corporation?

• Owned by stockholders

• Owned by the government

• Owned by one person

• Owned by partners

What does limited life mean for a business?

• The business will continue indefinitely

• The business will close or reorganize if ownership changes

• The business is not affected by ownership changes

• The business will always be profitable

What is an example of a monopoly?

• Natural gas

• Crude oil

• Breakfast cereals

• Electrical power companies

What does double tax mean for corporations?

• Corporations pay tax only on dividends

• Corporations pay no taxes

• Corporations pay tax on profits and dividends

• Corporations pay tax only on profits

Which market structure is characterized by only a few sellers dominating the market?

• Monopoly

• Oligopoly

• Monopolistic Competition

• Pure Competition

What is the main feature of a partnership?

• Owned by the government

• Owned by stockholders

• Owned by one person

• Owned by two or more people

What does limited liability mean?

• The responsibility is limited to the shares owned

• The owner is personally responsible for all debts

• The owner is not responsible for any debts

• The business is not liable for any debts