Tag: Accountant

In which of the following circumstances would a cartel be MOST likely to operate?

Select ONE answer:

1. A market with an undifferentiated product and many producers
2. A market with differentiated products and few producers
3. A market with many producers and where demand for the product is inelastic
4. A market with few producers and an undifferentiated product

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 == > A cartel is most likely where there are few producers in the market, each of them producing a similar product.

This work is licensed under a Creative Commons Attribution 4.0 International License.

The Competition Act 1998 prohibits agreements, business practices and conduct that damage competition, including abuse of a dominant position.

Examples of specific types of conduct that are particularly likely to be considered as an abuse where the business is in a dominant position include which ONE of the following?

Select ONE answer:

1. Imposing transfer pricing
2. Attaching unrelated supplementary conditions to contracts
3. Providing public goods on behalf of the government
4. Starting a summer TV advertising campaign

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 2

1. Not correct
2. Correct == > Imposing unfair purchase or selling prices would be considered as an abuse where the business is in a dominant position, but transfer pricing refers to the pricing of goods and services within a multi-divisional organisation, particularly regarding cross-border transactions.
3. Not correct
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.

The Competition Act 1998 prohibits agreements, business practices and conduct that damage competition, including abuse of a dominant position.

Examples of specific types of conduct that are particularly likely to be considered as an abuse where the business is in a dominant position include which ONE of the following?

Select ONE answer:

1. Imposing transfer pricing
2. Providing public goods on behalf of the government
3. Applying different trading conditions to equivalent transactions, thereby placing certain parties at a competitive disadvantage
4. Starting a summer TV advertising campaign

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 3

1. Not correct
2. Not correct
3. Correct == > Imposing unfair purchase or selling prices would be considered as an abuse where the business is in a dominant position, but transfer pricing refers to the pricing of goods and services within a multi-divisional organisation, particularly regarding cross-border transactions.
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.

The Competition Act 1998 prohibits agreements, business practices, and conduct that damage competition, including abuse of a dominant position.

Examples of specific types of conduct that are particularly likely to be considered as an abuse where the business is in a dominant position include which ONE of the following?

Select ONE answer:

1. Imposing transfer pricing
2. Providing public goods on behalf of the government
3. Starting a summer TV advertising campaign
4. Limiting production markets or technical developments to the prejudice of consumers

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 == > Imposing unfair purchase or selling prices would be considered as an abuse where the business is in a dominant position, but transfer pricing refers to the pricing of goods and services within a multi-divisional organisation, particularly regarding cross-border transactions.

This work is licensed under a Creative Commons Attribution 4.0 International License.

Anti-monopoly legislation is an example of government intervention to address market failure caused by?

Select ONE answer:

1. Market imperfection
2. Externality
3. Asymmetric information
4. Inequity

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 1

1. Correct == > Monopoly is the antithesis of perfect competition and is, therefore, a market imperfection.
2. Not correct
3. Not correct
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.