1. Business Organizations & Market Structures
Practice Questions
Business Organizations
&
Market Structures

2. Sole Proprietorship Partnership Corporation
Business & Owners are one entity
Unlimited liability
Single taxation
Limited life
Business & Owners (shareholders) are two separate entities
Limited liability
Double taxation
Unlimited life
Control
Resources

3. In what type of business organization is each owner personally liable for all business debts, even if the debts were created by other owners?
a) corporation
b) partnership
c) sole proprietorship
d) oligopoly

4. In what type of business organization is each owner personally liable for all business debts, even if the debts were created by other owners?
a) corporation
b) partnership
c) sole proprietorship
d) oligopoly

5. The easiest form of business to start and end is a(n)
a) limited liability partnership
b) monopoly
c) franchise
d) sole proprietorship

6. The easiest form of business to start and end is a(n)
a) limited liability partnership
b) monopoly
c) franchise
d) sole proprietorship

7. One important advantage of forming a partnership is that this form of business organization gives each owner sole control over the business.
a) True
b) False

8. One important advantage of forming a partnership is that this form of business organization gives each owner sole control over the business.
a) True
b) False

9. Perfect or Pure Competition Monopolistic Competition
Oligopoly
Monopoly
Ease of Entry
Control over Price
# of Sellers
Homogeneous
Heterogeneous
Homogeneous

10. Price takers are individuals in a market who:
a) select a price from a wide range of alternatives.
b) select the lowest price available in a competitive market.
c) select the average of prices available in a competitive market.
d) have no ability to affect the price of a good in a market.

11. Price takers are individuals in a market who:
a) select a price from a wide range of alternatives.
b) select the lowest price available in a competitive market.
c) select the average of prices available in a competitive market.
d) have no ability to affect the price of a good in a market.

12. There are many sellers of blue jeans
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?
a) Perfect Competition
b) Oligopoly
c) Monopoly
d) Monopolistic Competition

13. There are many sellers of blue jeans
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?
a) Perfect Competition
b) Oligopoly
c) Monopoly
d) Monopolistic Competition

14. Which type of market structures has many producers (companies) and sell similar but different products from each other? These companies do not have control over the price and there are low barriers to entry.
a) perfect competition
b) monopolistic competition
c) oligopoly
d) monopoly

15. Which type of market structures has many producers (companies) and sell similar but different products from each other? These companies do not have control over the price and there are low barriers to entry.
a) perfect competition
b) monopolistic competition
c) oligopoly
d) monopoly