BUS 100 – Chapters 1–6 Exam Short Answer – Introduction to Business – 2026 –
Study and Practice Guide
monopoly - correct answer ✔✔ where one seller controls the price of products and services and
sets the price
oligopoly - correct answer ✔✔ competition in which few sellers dominate the market
monopolistic competition - correct answer ✔✔ many sellers that make similar products that
buyers think are different
perfect competition - correct answer ✔✔ when there are many sellers in the market and there
is no one to dictate the price of a product
sole proprietorship - correct answer ✔✔ a business that is owner, and usually managed, by one
person
partnership - correct answer ✔✔ a legal form of business with two or more owners
corporation - correct answer ✔✔ a legal entity with authority to act and have liability apart
from its owners
franchising - correct answer ✔✔ an arrangement whereby someone with a good idea for a
business sells the rights to use the businesses name and sell a product or service to others in a
given territory
franchisor - correct answer ✔✔ a company that develops a product concept and sells others the
rights to make and sell the products
Study and Practice Guide
monopoly - correct answer ✔✔ where one seller controls the price of products and services and
sets the price
oligopoly - correct answer ✔✔ competition in which few sellers dominate the market
monopolistic competition - correct answer ✔✔ many sellers that make similar products that
buyers think are different
perfect competition - correct answer ✔✔ when there are many sellers in the market and there
is no one to dictate the price of a product
sole proprietorship - correct answer ✔✔ a business that is owner, and usually managed, by one
person
partnership - correct answer ✔✔ a legal form of business with two or more owners
corporation - correct answer ✔✔ a legal entity with authority to act and have liability apart
from its owners
franchising - correct answer ✔✔ an arrangement whereby someone with a good idea for a
business sells the rights to use the businesses name and sell a product or service to others in a
given territory
franchisor - correct answer ✔✔ a company that develops a product concept and sells others the
rights to make and sell the products
