Corporations

1. Corporations are formal organizations that are set up and run to conduct business activities, engaging in various ventures such as manufacturing, trading, and providing services. They are typically owned by shareholders who invest capital in the company in exchange for ownership stakes represented by shares of stock. Corporations are considered legal entities separate from their owners, providing limited liability protection to the shareholders. They are governed by a board of directors who are responsible for making important decisions, setting strategic goals, and overseeing the company's operations. Corporations play a crucial role in the economy, generating employment opportunities, driving innovation, and contributing to economic growth and development.

What is a corporation?

A) An informal group of people.
B) A sole proprietorship.
C) A legal entity separate from its owners.
D) A partnership between two individuals.

2. Who owns a corporation?

A) Employees.
B) Government.
C) Customers.
D) Shareholders.

3. What is a publicly traded corporation?

A) A corporation whose shares are traded on stock exchanges.
B) A corporation that is government-owned.
C) A corporation with a single owner.
D) A non-profit corporation.

4. How are dividends distributed to shareholders taxed?

A) As capital gains or ordinary income.
B) Tax-free.
C) Only taxed at the corporate level.
D) Taxed at a flat rate.

5. What is the Securities and Exchange Commission (SEC) responsible for?

A) Collecting corporate taxes.
B) Overseeing mergers and acquisitions.
C) Regulating the securities industry.
D) Managing employee benefits.

6. What is the purpose of a corporate annual meeting?

A) To announce layoffs.
B) To conduct daily business operations.
C) To celebrate the company's success.
D) To update shareholders on company performance and elect directors.

7. Which financial statement shows a corporation's financial position at a specific point in time?

A) Cash flow statement.
B) Balance sheet.
C) Income statement.
D) Statement of retained earnings.

8. What is a proxy statement in corporate governance?

A) A financial incentive for executives.
B) A report on environmental sustainability.
C) A document disclosing information for shareholder voting.
D) A plan for international expansion.

9. What is a merger in the context of corporations?

A) Changing a company's legal structure.
B) Selling a company to another corporation.
C) Splitting a company into two separate entities.
D) Combining two companies into one.

Created with That Quiz — the math test generation site with resources for other subject areas.