Business Capitalism MCQs
Business Capitalism MCQs
These Business Capitalism multiple-choice questions and their answers will help you strengthen your grip on the subject of Business Capitalism. You can prepare for an upcoming exam or job interview with these 30+ Business Capitalism MCQs.
So scroll down and start answering.
1: A Big-firm capitalism capitalist prototype in which corporation ownership is dispersed among investors representing a minimum of shareholders?
A. True
B. Fasle
2: A capitalist prototype in which a corporation tries to create something radical or new is known as ?
A. Entrepreneurial capitalism
B. Oligarchic capitalism
C. State-guided capitalism
D. Big-firm capitalism
3: The _____free choice of different parties to make certain exchanges?
A. Market
B. Trade
C. Business people
D. None of these
4: A _______prototype in which the powers of the state are oriented toward the promotion of a small segment of the population (usually the dictator)?
A. Entrepreneurial capitalism
B. Oligarchic capitalism
C. State-guided capitalism
D. Big-firm capitalism
5: ______ Full proprietary control over tangible or intangible things?
A. Property rights
B. Right of ownership
C. Mandate
D. Proprietary rights
6: A bundle of rights that are usually differentiated and defined in mature illegal systems?
A. True
B. False
7: A capitalist prototype that tries to link the powers of state with the power of the free market is known as ?
A. Entrepreneurial capitalism
B. Oligarchic capitalism
C. State-guided capitalism
D. Big-firm capitalism
8: One main pillar of capitalism is ______.
A. Property rights
B. Integrity
C. Free speech
D. Citizenship
9: A free and open market refers to the right of companies and individuals to ______.
A. Have immunity from expropriation
B. Possess items
C. Earn income
D. Make certain exchanges
10: Full propriety control over tangible or intangible things is called ______.
A. Common good
B. Immunity
C. Property rights
D. Open market
11: In a capitalist market, natural resources can be owned by ______.
A. Public entities
B. Governments
C. Private companies
D. Commodities
12: Products that generate high profits tend to attract more sellers. This channels resources into more ______ uses.
A. Productive
B. Costly
C. Counterproductive
D. Controlled
13: Sometimes, producers are incentivized to strive for lower production and sales costs in order to increase revenues by selling higher quantities at lower prices. What is this called?
A. Supply and demand
B. Economic growth
C. Competitive supply
D. Elastic demand
14: What is the function of government in socialism?
A. To require the market to reflect consumer needs and preferences
B. To guide the market in accordance with a comprehensive economic plan
C. To use a command and control approach to manage the economy
D. To reward competition and encourage innovative market solutions
15: In a capitalist market, if industry incumbents are unwilling to fill a specific consumer need, ______ will enter the market and fulfill the need.
A. Collectivists
B. Socialists
C. Competitors
D. Monopolies
16: How is technology viewed in a capitalist market?
A. As worthy of reward
B. As counterproductive
C. As misguided
D. As chaotic
17: Capitalism tends to rely on enlightened self-interest in order to deliver efficiencies in the market. Defenders of capitalism will argue that not only is this necessary for efficiency but it is also necessary to preserve ______.
A. Innovation and technology
B. Economic and political liberty
C. Wealth and prosperity
D. The private sector
18: Nigeria, which suffers from a superabundance of oil, resembles ______ capitalism.
A. State
B. Big-firm
C. Oligarchic
D. Collectivist
19: What archetype of capitalism supports firms run by elite professional managers who act as trustees of principal investors?
A. Monopoly
B. Big-firm
C. Oligarchic
D. Entrepreneurial
20: Under which archetype of capitalism do risk and expense of innovation have the potential for high economic returns?
A. State
B. Oligarchic
C. Monopoly
D. Entrepreneurial
21: Entrepreneurs are often creative geniuses who see economic value where others only see ______.
A. Predictable outcomes
B. Dead ends
C. Enterprises
D. Risks
22: When a state runs a company and is responsible for regulating it under state-guided capitalism, it is more prone to ______.
A. Corruption
B. Ethics
C. Sustainable growth
D. Global trade
23: Given the history of state-owned enterprises, how would you expect such an enterprise to perform?
A. Outperform competitors
B. Competitively perform
C. Underperform
D. Unpredictably perform
24: A main criticism of capitalism is that efficiency is achieved at the high cost of ______.
A. Inequality
B. Ownership
C. Demands
D. Egoism
25: In capitalism, a large grocery store chain may move into communities and, consequently, put small business owners out of business. Critics of capitalism may use a scenario like this to demonstrate that the ______ are disproportionate to the benefits.
A. Technologies used in capitalism
B. Competitions at work in capitalism
C. Social costs of capitalism
D. Corruptions that appear in capitalism
26: The French economist Thomas Piketty proposed ______ to correct the escalating inequality that critics claim result from capitalism.
A. A reallocation of resources
B. Equally distributed market incentives
C. Central planning and extreme income redistribution
D. An annual progressive tax on wealth
27: Despite taking different forms, ______ dominates the entire world.
A. Capitalism
B. Socialism
C. Collectivism
D. Entrepreneurialism
28: How do fiduciary obligations to investors help support a free market?
A. Create many buyers and sellers
B. Provide perfect information
C. Ensure capital formation and economic expansion
D. Prevent market failures by promoting public goods
29: There are four generic forms of market failures: imperfect competition, public goods, externalities, and ______.
A. Differentiated services
B. Strategic behaviors
C. Competitive rivalry
D. Imperfect information
30: What three characteristics must exist for markets to function efficiently?
A. Transparency, loyalty, and fairness
B. Entrepreneurship, virtues, and competition
C. Trust, complexities, and struggle
D. Gamesmanship, loyalty, and fairness
31: What is TRUE of a weak moral environment for managers?
A. It hampers the ability of managers to develop moral discipline.
B. It promotes transparency, loyalty, and fairness.
C. It preserves candor and responsiveness.
D. It underpins the stability of market capitalism.
32: Relevant, accurate, and timely information contribute to market success by assisting ______.
A. Entrepreneurs in relying on “black box” trading schemes when reporting to regulators and investors
B. Wall Street in sustaining political legitimacy when working with investors and regulators
C. In widening the knowledge gap between managers and regulators and investors, therefore endangering the free market
D. Regulators and investors in accurately assessing the quality of securities and financial assets.
List of Business Capitalism MC...
Available in:
Business Capitalism MCQs
