5.3 CORPORATIONS EXAM QUESTIONS
WITH ACCURATE RIGHT ANSWERS .
What role does the Securities and Exchange Commission fulfill with regard to corporations? -
Correct Answer -It regulates the stock market.
What happens to the stockholders when a corporation files for bankruptcy? - Correct Answer
-The owners can lose only the money they have invested.
What does the board of directors in a corporation do? - Correct Answer -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 - Correct Answer -a vertical merger.
Do multinationals have more or fewer regulations than corporations that are in just one
country? - Correct Answer -more, because they have to obey laws and pay taxes in more than
one country
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WITH ACCURATE RIGHT ANSWERS .
What role does the Securities and Exchange Commission fulfill with regard to corporations? -
Correct Answer -It regulates the stock market.
What happens to the stockholders when a corporation files for bankruptcy? - Correct Answer
-The owners can lose only the money they have invested.
What does the board of directors in a corporation do? - Correct Answer -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 - Correct Answer -a vertical merger.
Do multinationals have more or fewer regulations than corporations that are in just one
country? - Correct Answer -more, because they have to obey laws and pay taxes in more than
one country
1
