World Of Business Quiz: The Corporation

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Questions: 12 | Attempts: 1,496

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World Of Business Quiz: The Corporation - Quiz

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Questions and Answers
  • 1. 

    A business owned by shareholders is called a corporation or a _____________ company.

    • A.

      Co-operative

    • B.

      Limited

    • C.

      Crown

    • D.

      Franchise

    Correct Answer
    B. Limited
    Explanation
    A business owned by shareholders is called a corporation or a limited company because in a limited company, the liability of the shareholders is limited to the amount they have invested in the company. This means that their personal assets are protected and they are not personally responsible for the debts and obligations of the company. Limited companies are a popular form of business ownership as they provide a separate legal entity, allowing for easier transfer of ownership and access to capital through the sale of shares.

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  • 2. 

    Profit paid to a corporation is called ___________________ .

    • A.

      Profit

    • B.

      Shares

    • C.

      Dividend

    • D.

      Assets

    Correct Answer
    C. Dividend
    Explanation
    When a corporation earns a profit, it can distribute a portion of it to its shareholders as a return on their investment. This distribution is known as a dividend. Dividends are typically paid in the form of cash, additional shares of stock, or other assets. Therefore, the correct answer is "dividend."

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  • 3. 

    The owners of a corporation are referred to as ____________ .

    • A.

      Creditors

    • B.

      Directors

    • C.

      Shareholders

    • D.

      Members

    Correct Answer
    C. Shareholders
    Explanation
    The owners of a corporation are referred to as shareholders. Shareholders are individuals or entities that hold shares of stock in a corporation, which represents their ownership interest in the company. As shareholders, they have certain rights, such as voting on corporate matters and receiving dividends, as well as bearing the risk and potential rewards of the business.

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  • 4. 

    If a corporation paid out a total of $250 000 in dividends on 25 000 shares, the holder of one share would receive ___________.

    • A.

      $200

    • B.

      $100

    • C.

      $15

    • D.

      $10

    Correct Answer
    D. $10
    Explanation
    If a corporation paid out a total of $250,000 in dividends on 25,000 shares, the holder of one share would receive $10. This can be calculated by dividing the total amount of dividends ($250,000) by the total number of shares (25,000), resulting in $10 per share.

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  • 5. 

    The legal document that outlines the set of rules and regulations for a company is called a ______________.

    • A.

      Stock

    • B.

      Proxy

    • C.

      Corporation

    • D.

      Charter

    Correct Answer
    D. Charter
    Explanation
    A charter is a legal document that outlines the set of rules and regulations for a company. It serves as the foundation for the company's existence and operations, defining its purpose, structure, rights, and responsibilities. It is a crucial document that governs the company's activities and provides a framework for its decision-making processes.

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  • 6. 

    The corporation's ownership is divided up into many small parts, each of which is called a ________ or a ________ .

    • A.

      Share, stock

    • B.

      Charter, proxy

    • C.

      Share, dividend

    • D.

      Proxy, stock

    Correct Answer
    A. Share, stock
    Explanation
    In a corporation, ownership is divided into small parts known as shares. These shares represent a portion of the company's ownership and can be bought or sold by individuals. On the other hand, stocks refer to the overall ownership units of a corporation that are available for purchase on the stock market. Therefore, the correct answer is share, stock.

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  • 7. 

    The ______________ sets the policies of the company, determines the particular products or services to be produced, and decides how the profits will be used.

    • A.

      Executive

    • B.

      Shareholders

    • C.

      Board of directors

    • D.

      Administrators

    Correct Answer
    C. Board of directors
    Explanation
    The board of directors is responsible for setting the policies of the company, making decisions on the specific products or services to be produced, and determining how the profits will be utilized. They are a group of individuals elected by the shareholders to oversee the overall management and direction of the company. The board of directors plays a crucial role in guiding the company's strategic decisions and ensuring the company's long-term success.

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  • 8. 

    The daily operations of a corporation are managed by the ____________ .

    • A.

      Executive

    • B.

      Shareholders

    • C.

      Board of directors

    • D.

      Employees

    Correct Answer
    A. Executive
    Explanation
    The daily operations of a corporation are managed by the executive. The executive team is responsible for making strategic decisions, overseeing the day-to-day activities, and ensuring the company's goals and objectives are met. They are in charge of managing the different departments, implementing policies and procedures, and leading the organization towards success. The executive team typically consists of top-level managers, such as the CEO, CFO, and COO, who have the authority to make important decisions and guide the company's operations.

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  • 9. 

    A company's executive group is composed of ...

    • A.

      The board of directors and the shareholders.

    • B.

      The owners, management, and employees.

    • C.

      A president, vice-president, secretary, and treasurer.

    • D.

      Those who have the most proxy votes.

    Correct Answer
    C. A president, vice-president, secretary, and treasurer.
    Explanation
    The executive group of a company typically consists of key positions such as a president, vice-president, secretary, and treasurer. These roles are responsible for overseeing and managing the company's operations, finances, and decision-making processes. The board of directors and shareholders, on the other hand, have a different role in the company's governance and ownership. They provide strategic direction, make important decisions, and represent the interests of the shareholders. Therefore, the answer "a president, vice-president, secretary, and treasurer" accurately reflects the composition of the executive group in a company.

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  • 10. 

    The executive group is appointed by the _______________ .

    • A.

      Shareholders

    • B.

      The people with the most proxy votes

    • C.

      The company's charter

    • D.

      The board of directors

    Correct Answer
    D. The board of directors
    Explanation
    The executive group is appointed by the board of directors. The board of directors is responsible for making important decisions and overseeing the overall management of the company. They have the authority to appoint and remove executive members who are responsible for the day-to-day operations of the organization. The board of directors ensures that the executive group aligns with the company's goals and objectives and represents the interests of the shareholders.

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  • 11. 

    One advantage of a corporation is that it  ...

    • A.

      Makes a larger profit than other types of businesses.

    • B.

      Has the ability to raise an unlimited amount of capital.

    • C.

      Is owned by only a few people.

    • D.

      Allows it's shareholders to have a say in the daily operations of the business.

    Correct Answer
    B. Has the ability to raise an unlimited amount of capital.
    Explanation
    A corporation has the ability to raise an unlimited amount of capital because it can issue stocks and bonds to investors. This means that it can attract a large number of investors and raise funds easily, allowing it to finance its operations, expand its business, and invest in new projects. Unlike other types of businesses, such as sole proprietorships or partnerships, corporations have the advantage of being able to tap into the financial markets and raise substantial amounts of money to support their growth and development.

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  • 12. 

    A disadvantage of a corporation is ...

    • A.

      That executives and shareholders have little personal contact with employees or customers.

    • B.

      Shareholders make less profit.

    • C.

      Profits are taxed several times by the government.

    • D.

      They destroy the environment.

    Correct Answer
    A. That executives and shareholders have little personal contact with employees or customers.
    Explanation
    A disadvantage of a corporation is that executives and shareholders have little personal contact with employees or customers. This lack of personal interaction can lead to a disconnect between the decision-makers and the people directly involved in the day-to-day operations of the company. It can hinder effective communication, understanding of employee or customer needs, and the ability to address concerns or make informed decisions. This can ultimately impact the overall success and growth of the corporation.

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