Market Structures and Business Entities Quiz

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Questions and Answers

What type of market has only one producer and one product, making it extremely hard to enter?

  • Oligopoly
  • Perfect competition
  • Monopolistic competition
  • Monopoly (correct)

In a publicly traded corporation, who does the CEO answer to?

  • Silent partner
  • Shareholders
  • Limited liability/ LLC
  • The board of directors (correct)

Which market structure has prices determined by supply and demand?

  • Oligopoly
  • Perfect competition (correct)
  • Monopolistic competition
  • Monopoly

What type of investment is usually considered the riskiest among the ones studied?

<p>Stocks (A)</p> Signup and view all the answers

When you use your debit card, where are you getting the money from?

<p>Your checking account (A)</p> Signup and view all the answers

Which market structure grants producers the most power?

<p>Monopoly (C)</p> Signup and view all the answers

What type of market structure involves many producers with identical products?

<p>Perfect competition (D)</p> Signup and view all the answers

In which market structure are prices determined by supply and demand?

<p>Perfect competition (A)</p> Signup and view all the answers

What type of investment is advisable for diversification and minimizing risks?

<p>Mutual funds (A)</p> Signup and view all the answers

Which market structure grants producers some power but not as much as in a monopoly?

<p>Oligopoly (D)</p> Signup and view all the answers

What type of market involves a parent company allowing others to use their trademark and business model?

<p>Franchise (B)</p> Signup and view all the answers

Which investment option is typically considered the least risky?

<p>Bonds (B)</p> Signup and view all the answers

In what market structure does a publicly traded corporation CEO answer to the board of directors?

<p>Monopoly (C)</p> Signup and view all the answers

Which market structure involves a handful of producers offering similar products?

<p>Oligopoly (D)</p> Signup and view all the answers

What type of investment is riskiest among the ones studied?

<p>Stocks (C)</p> Signup and view all the answers

What type of market structure is characterized by one producer and one product making it hard to enter?

<p>Monopoly (A)</p> Signup and view all the answers

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