publicly held corporation has

many shareholders who can buy or sell its stock.

How do corporations raise capital?

By selling stocks and bonds

In order to do business, what is one regulation that corporations have to follow?

They have to file quarterly and annual reports with the SEC.

What is one advantage of a vertical merger?

It can allow a firm to operate more efficiently.

Which of the following is a potential disadvantage of multinational corporations?

They have an undesired influence on politics and culture in other countries.

What role does the Securities and Exchange Commission fulfill with regard to corporations?

It regulates the stock market

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

The owners can lose only the money they have invested.

What does the board of directors in a corporation do?

make all major decisions for the corporation

The owner of a factory that manufactures clothing buys several clothing stores to sell the
clothing the factory produces. This is an example of
A vertical merger
Do multinationals have more or fewer regulations than corporations that are in just one
country?

more, because they have to obey laws and pay taxes in more than one country