Quiz on Corporations and Business Practices

What is a corporation?

• Businesses that sell portions of ownership called stock shares

• A type of government organization

• A non-profit organization

• A small family-owned business

Stockholders invest in a corporation and get a percentage of profits based on what?

• The amount of stock they own

• The number of employees in the company

• The company's annual revenue

• The age of the corporation

How much can stockholders lose when investing in stock?

• Only the money they invested

• Twice the money they invested

• All their personal assets

• Nothing at all

If a company goes out of business, who is responsible for the debt?

• The company

• The investors

• Both the company and investors

• The government

What do corporations use the money raised by selling stocks for?

• To expand their businesses

• To pay off debts

• To buy luxury items for executives

• To donate to charity

How did Andrew Carnegie expand his steel business?

• Buying out competitors when steel prices were low

• Increasing the price of steel

• Reducing the quality of steel

• Hiring more workers

What did Carnegie acquire to make his steel mills grow?

• Iron ore mines

• Gold mines

• Diamond mines

• Copper mines

What company did Rockefeller start that was the country's largest oil refining company?

• Standard Oil Company

• General Electric

• Ford Motor Company

• ExxonMobil

Leland Stanford was another huge businessperson during the late 1800s. What were the 2 things he founded?

• Central Pacific RR and Stanford University

• Harvard University and Union Pacific RR

• Yale University and Southern Pacific RR

• Princeton University and Northern Pacific RR

What did social Darwinists think about “survival of the fittest?”

• It is the theory that decides which humans would succeed in life and in general. Same with businesses.

• It is a theory that applies only to animals.

• It is a theory that supports equal opportunities for all.

• It is a theory that promotes government intervention in business.