Future Business Leaders of America (FBLA) Business Management Practice Test

What do we call a situation where one party maintains total control over a type of industry?

1. Takeover

2. Landslide

3. Monopoly

4. Hierarchy of needs

The correct answer is: Monopoly

The term that describes a scenario where one party maintains total control over an industry is "monopoly." A monopoly arises when a single entity has exclusive control over the supply or trade of a product or service, allowing that entity to set prices and limit competition. This often leads to a lack of choices for consumers and can be detrimental to market health, as it eliminates competition that typically drives innovation and keeps prices in check. In contrast, a takeover refers to the acquisition of one company by another, which can lead to greater control, but does not inherently imply total control over an entire industry. A landslide typically corresponds to a significant defeat or victory in electoral contexts and does not relate to business structure. The hierarchy of needs is a psychological theory that outlines the stages of human motivation and is unrelated to industry control or market dynamics.