Competition and Business Exam Multiple Choice: Choose the answer that best fits the question. 1. The most common form of business organization in the United States is the ___________. a. sole proprietorship b. limited partnership c. department store d. corporation 2. What is the main purpose of advertisements? a. inform consumers about goods & services b. to provide jobs c. to entertain people d. to fill commercial time slots 3. The cheapest form of advertising is: a. flyers b. word of mouth c. commercials d. billboards 4. The purpose of _________ is to provide investors with full disclosure before they choose to invest. a. insurance b. insight c. arbitration d. transparency 5. Which of the following occurs when one business dominates the sale of a particular item? a. monopoly b. oligopoly c. joint venture d. monarchy 6. Which of the following is a description of a falling stock market? a. bull market b. bear market c. baboon market d. beetle market 7. Which of the following is the term used when a government encourages competition in the economy? a. communism b. capitalism c. collectivism d. socialism 8. Which of the following is the best description of NASDAQ? a. the place where stocks are bought and sold b. the largest corporation in the world c. an indicator of the entire stock market d. electronic stock exchange 9. When a company joins together with a company that it buys supplies from, it is called a: a. conglomerate merger b. horizontal merger c. vertical merger d. constructive merger 10. If two banks join together, what type of merger has occurred? a. vertical b. horizontal c. technological d. conglomerate 11. A business only owned by one person is a ______________________. a. sole proprietorship b. partnership c. corporation d. franchise 12. Which of the following is a description of a rising stock market? a. bull market b. bear market c. baboon market d. beetle market 13. A temporary merger to complete a job is defined as a: a. franchise b. partnership c. joint venture d. limited partnership 14. What is the best example of a partnership? a. Smith’s family grocery store b. McDonald’s c. Danielle’s paint supplies d. The law offices of Kulik and Associates 15. Which of the following is the best description of the NYSE? a. a location where stocks are bought and sold b. the largest corporation in the world c. a conglomerate merger d. electronic stock exchange 16. What is the DJIA? a. average of the top 30 corporations in America b. indication of how the entire stock market is doing c. all of the above d. none of the above 17. A corporation is owned by _______________. a. the President of the company b. the Board of Directors c. Common people who own stock d. the United States government 18. A corporation must register with the: a. national government b. state government c. county government d. city government 19. Which of the following is an attribute of an effective advertisement? a. repetitive jingle b. attractive women c. humorous message d. all of the above 20. Two ways people can make money off of stocks is by selling shares for more than they bought them for and: a. quorums b. volumes c. dividends d. crackdowns 21. The best advice in investing in stock is: a. buy high, sell low b. only invest in Dow Jones stocks c. concentrate on NASDAQ stocks d. buy low, sell high 22. A franchisee is a person: a. sells the name of a franchise b. who is from France c. begins a partnership with a sole-proprietor d. buys the name of a franchise 23. What is discrimination? a. treating someone differently due to race, religion, gender, age, etc. b. treating everyone fairly c. treating someone for a terminal disease d. treating someone as a god or goddess 24. Which of the following is an example of a business fulfilling their responsibility to the community? a. using discrimination among the people who work there b. donating a percentage of their profits to a local charity c. creating safe and reliable products d. providing transparency to stock holders 25. Competition has what effect on price? a. increases price b. no effect on price c. keeps prices low d. it destroys the market Read the stock market page to answer questions 36-40. 52 week High Low Stock Volume in 1000’s High Low Last Change 75.44 47.44 64.23 65.75 KO McDnlds Us Airways FTU 25011 351870 509128 22573 55.75 44.19 26.44 40.06 54.81 43.69 27.63 39.50 55.38 44.06 27.37 39.96 + .44 - .31 + .63 + 1.19 53.63 26.75 26.56 39.63 31. What is the daily low of KO? 32. What the closing price for FTU stock? 33. Which stock lost value? 34. What is the high for the year of McDnlds? 35. How many shares of US Airways stock were traded? Extra Credit: 1. Who sings the song with the following lyrics? I'm only pretty sure that I can't take anymore Before you take a swing I wonder What are we fighting for When I say out loud I want to get out of this 2. What is the title of National Anthem of the United States? 3. Who wrote the National Anthem of the United States?