Cooperatives, Non-Profits, and Government Regulation
100
What are the market structures?
What is pure competition, monopoly, monopolistic competition, and oligopoly?
100
What is an oligopoly?
Few large firms dominate the market.
100
What are the different business structures?
Corporations, Sole Proprietorships, Partnerships, and Franchises.
100
Stocks are a characteristic of what business structure?
What is corporations?
100
If the YMCA makes a billion dollars in 2017, where does that money have to go?
Back into the YMCA. New equipment, pays for underprivileged kids to attend, etc.
200
What are the different types of mergers? How do they work?
Horizontal merger: two companies that do the same thing become one.
Vertical mergers: two companies that are in the same market but different parts of the supply chain become one.
200
What is monopolistic competition?
Many sellers sell similar items.
200
This model comes with advertising and training.
What is franchises?
200
Your business is a sole proprietorship and you die. What happens to your business?
It also dies.
200
What are the three types of cooperatives? Provide an example of a cooperative.
Service cooperative, producer cooperative, and consumer cooperative.
300
What is pure competition? Provide an example.
Many producers produce the same thing at the same price. There are no examples.
300
Jean companies are an example of....
Monopolistic competition.
300
What is the number one reason that people choose a corporation as their business structure?
What is limited liability?
300
Toys-R-Us, Toys Direct, and Bob's Toys Depot form what type of merger?
What is a horizontal merger?
300
Explain the effects of regulation and deregulation, and how they affect consumers and businesses.
Regulation- tends to be good for the consumer.
Deregulation- good for the business.
400
Florida Power and Light is an example.
What is a monopoly?
400
Coca cola and pepsi are examples of....
What is oligopoly?
400
Explain limited versus unlimited liability.
Limited liability protects the shareholders from responsibility if anything happens within the business. Unlimited liability means the business owners are completely responsible for anything that occurs in the business.
400
What is the biggest downfall to owning a sole proprietorship or partnership?
What is full liability?
400
What is market power? What are the three ways a business can gain market power?
The ability to control prices within the market. Form a cartel, merge with leading companies, and predatory pricing.
500
Why does the government dislike monopolies?
Why do they allow some monopolies to form?
It prevents competition.
Sometimes it makes sense for one producer to supply the product.
500
The NFL is an example of...
A monopoly.
500
Explain the structure of a corporation. What is a potential problem for the founder of a corporation?
Stockholders vote for the board of directors who choose the CEO.
The founder of the company could lose control of the company.
500
What is the relationship between franchises and corporations?
The parent company is a corporation that has a contract with the franchise.
500
Provide an example of the governments use of antitrust laws.
When the government forced Standard Oil to break into smaller competing companies so they wouldn't have a monopoly over oil.