Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Civics and Econ > M2 Study guide > Flashcards

M2 Study guide Flashcards

1
Q

cartel

A

organization of producers established to set productions price for product

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

describe a monopolistic competition

A

may producers

different products

barriers to entry

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Hoe do economies of sclae help larger buisnesses

A

LArger buisness will set their products & make more profit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

economies of scale

A

proportionate saving in costs gained by increased level of production

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Partnership(s)

A

buisness run by two people

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

3 advantages of a sole proprietorship

A

Easy to start up

Owner keeps all profits

doesnt have to pay sperate buisness taxes

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Corporation

A

form of buisness organization recognized by law as a seperate legal entity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Describe the role of the government in maintaining compettition

A

Passed laws limiting monopolies; mergers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

3 disadvantages of a proprietorship

A

Raising finacial capital

unlimited liability

limited life

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

3 advantages of a partnership

A

sharing of profits

ease of start up

ease of management

special legal status

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

conglomerate

A

combines two or more unrelated firms

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

14th admendment

A

gives buisness legal support

(property owned by a buisness)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

concentration ratio

A

total percentage of top four producers in an industry

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

If monopolies are so bad, why does the gov. allow some to exist

A

Monoplies can produce neceasary services @ a reasonable price to consumers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

3 advantages of a corporation

A

easy to raise financial capital

ease of transferring ownership of corporation

unlimited life

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

3 disadvantages of a franchise

A

might have to pay back franchise

dont provide high quaility products of cleanliness

spenning millions of money

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Horozotal merger

A

combines two firms in an industry producig/selling same product

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

3 disadvantages of a partnership

A

Each partner is fully responisble for acts of all other partners

limited life

potential for conflict beteen partners

resposible of debts

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

market share

A

percentage produced by one company in an industry

20
Q

Monopolistic competion

A

has all characteristic of perfect competition except product diffenfentation

21
Q

How does the 14th admendment help buisnesses

A

gives legal suport, allowing buisness to own property

22
Q

Would the gov. allow (Department of Justice) allow Keloggs and General Mills to merge? Why not?

A

NO b/c the concentration ratio is 60% which isnt allowed

23
Q

What are two advantages of franchises over sole proprietorships

A

National Advertising, reduces risk asscociated w/ sale

24
Q

Perfect competition

A

large # of well informed independent buyers and sellers who freely exchange identical products

25
Q

Describe the role of the gov. in preventing deceptive advertising

A

FTC

26
Q

unlimited liability

A

owners personally & fully resposible for all losses and debts of buisness

27
Q

Describe the role of the gov. in ensuring fair pricing

A

Depatment of Justice requlates

28
Q

What does the department of justice seek to maintain?

A

Competitive markets so consumers can get, low prices, variety of products, better quality goods, convenience and service, innovation in the market, truth in advertising

29
Q

Laissez faire

A

belief that the gov. shouldnt interfere with buisnesses

30
Q

Why does advertising play no role in either perfectly competitve markets or monoploies

A

no matter what, a consumer will have to by a certain product because there are no subsitutes

31
Q

non price leadership competition

A

using product diffrentiation & advertising to attract customers

32
Q

price leadership

A

dominant firm sets price and other smaller buisness follow

33
Q

Monoploly

A

one one seller for a particular product

34
Q

3 advantages of a franchise

A

right to use company name, personael, national ads

buy to succsessful company make money

agreement to franchise reduces risk associated with sole prorietorship

35
Q

Oligopoly

A

few very large sellers dominate the industry

36
Q

Which buisnnes is the easiest to start

A

Proprietorship

37
Q

vertical merger

A

combines companies in two different industries producing different goods

38
Q

limited liability

A

owner’s has some responsibilty

39
Q
A
40
Q

Sole Proprietorships

A

Buisness owned and run by one person with all rights to all profits and unlimited liabilty for all debts of the firm

41
Q

Which buisness type earns the greatest amount of profits

A

corporation

42
Q

double taxtion

A

Taxtion of dividends both corporate profit and personal income

43
Q

Sherman Anti-trust-Act

A

No one is allowed to make any kind of agreement, conspiracy or any combination to restrain tade/fixed prices

44
Q

collusion

A

producers get together and make agreements on production levels and prices

45
Q

Stock

A

certificate of ownership in a corporation

46
Q

3 disadvantages of a corporation

A

must keep detailed sales and expense records

double taxtion

owners share holders have little voice in how buisness is run

47
Q

Franchise

A

Contract which a corporation allows a person/group to use payments an meet certain requirements

Civics and Econ (10 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions