A publicly held corporation has

A. no legal identity beyond that of its owners.

B. many shareholders who can buy or sell its stock.
C. a few stockholders who are often family members.
D. stockholders who rarely trade their shares of stock.
B
How do corporations raise capital?
A. by transferring funds from the owners to the investors
B. through grants from the board of directors
C. by taking out loans against the owners' assets
D. by selling stocks and bonds

D
In order to do business, what is one regulation that corporations have to follow?
A. They have to form limited liability corporations.
B. They have to have an advisory board that makes financial decisions.
C. They have to sell stocks and bonds on the stock exchange.
D. They have to file quarterly and annual reports with the SEC.
D. they have to file quarterly and annual reports with the SEC
What is one advantage of a vertical merger?
A. It can allowa firm to operate more efficiently.
B. It can allow a firm to have a monopoly.
C. It can allow a firm to avoid government regulations.
D. It can allow a firm to purchase unrelated businesses.
A

What happens to the stockholders when a corporation files for bankruptcy?

A. The stockholders must also file for bankruptcy.
B. The owners can force the board of directors to pay the debt.
C. The owners can lose only the money they have invested.
D. The owners can avoid paying the debt by forming a limited liability corporation.
C
What does the board of directors in a corporation do?
A. work in the various departments of the corporation
B. run the corporation and oversee its operations
C. own the corporation
D. make all major decisions for the corporation
D
Do multinationals have more or fewer regulations than corporations that are in just one
country?
A. fewer, because they pay less taxes than regular corporations
B. the same, because they only have to obey the laws and pay the taxes of the country they are
headquartered in
C. more, because they have to obey laws and pay taxes in more than one country
D. more, because they are not allowed to have vertical or horizontal mergers
C
Suppose a firm that makes appliances merges with a company that produces running shoes,
and it later buys a dairy. What is the combination called?
A. franchise
B. horizontal merger
C. cooperative
D. conglomerate
D

What is a KEY reason that an entrepreneur might choose to establish a corporation rather than
a partnership or a sole proprietorship?
A. no personal liability
B. limited start-up costs
C. equal sharing of profits
D. ability to pass the business on to children
A. no personal liability