In an Industry with a Small Number of Equal-Sized Firms

question 71

Multiple Choice

In an industry with a small number of equal-sized firms where none of the firms have superior knowledge,the _____ is most likely to apply.

• A)Cournot model of oligopoly
• B)perfectly competitive model
• C)dominant firm model of oligopoly
• D)Stackelberg model of oligopoly

Recognize the significance of organizational ethics and compliance in enhancing non-financial and financial performance.

Identify anticompetitive strategies and their implications for antitrust legislation.

Know key provisions of major financial and ethical regulations including the Sarbanes-Oxley Act and the Dodd-Frank Wall Street Reform and Consumer Protection Act.

Distinguish between different types of laws (civil, criminal, competitive, administrative, regulatory) and their impact on business practices.

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Definitions:

Professional Corporation

A type of corporation for professionals such as lawyers, doctors, and accountants, subject to specific regulatory provisions.

Business

An organization or enterprising entity engaged in commercial, industrial, or professional activities.

Sole Proprietorship

A business structure where a single individual owns, operates, and is responsible for the business, enjoying all profits and bearing all losses.

Limited Liability Corporation

A business structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation.