A private corporation raises money by making shares available to thousands of people through selling stocks on the stock exchange.

Question

Group of answer choices

True

False

Because there are so many owners, a corporation is run by
Group of answer choices

a vote by all shareholders

a board of directors

an executive

a chief executive officer

If a corporation earns a profit of $200 000, and $50 000 is to be distributed to 500 shareholders, the owner of one share will receive a dividend of

Group of answer choices

10

400

100

40

If a sole proprietorship business does poorly, the owner is responsible for all the losses and could even lose his or her home and other personal belongings. This is called
Group of answer choices

business liability

limited liability

unlimited liability

personal liability

Answer 1

True - A private corporation does raise money by making shares available to thousands of people through selling stocks on the stock exchange.

A board of directors - Because there are so many owners, a corporation is run by a board of directors.

$10 - If a corporation earns a profit of $200 000, and $50 000 is to be distributed to 500 shareholders, the owner of one share will receive a dividend of $10.

Unlimited liability - If a sole proprietorship business does poorly, the owner is responsible for all the losses and could even lose his or her home and other personal belongings. This is called unlimited liability.