Accounting Multiple Choice Question – 21 July 2025

The following statements have been made about anti-monopoly legislation and market regulation.

Statement 1 – Anti-monopoly legislation is undertaken to compensate for lack of competition, and market regulation is undertaken to promote competition

Statement 2 – Anti-monopoly legislation is undertaken to promote competition and market regulation is undertaken to compensate for lack of competition

Statement 3 – Anti-monopoly legislation is undertaken to promote competition and market regulation is also undertaken to promote competition

Are these statements true or false?

Select ONE answer:

1. Statement 1. True and Statement 2. False and Statement 3. True
2. Statement 1. True and Statement 2. False and Statement 3. False
3. Statement 1. False and Statement 2. True and Statement 3. True
4. Statement 1. False and Statement 2. True and Statement 3. False

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 4

1. Not correct
2. Not correct
3. Not correct
4. Correct == > The first and third statements are false, but the second statement is true – anti-monopoly legislation favours competition, but where competition is not possible, then market regulation is used to compensate for the lack of competition.

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