Chapter 13 - Lesson 3 Homework

1.Why do corporate officials have such a large influence on government decisions?

• the strength of their shareholders

• great personal wealth and organizational connections

2.A corporation is an organization owned by whom?

• the corporate president

• the shareholders

3.Which definition best describes interlocking directorates?

• the heads of corporations sit on one another's boards

• two corporations merging into one

4.How do conglomerates help corporations improve their political power?

• by holding multiple companies under a single umbrella corporation

• by having a powerful board of directors

5.What is one criticism of multinational corporations?

• They depend on cheap labor in developing nations.

• They provide developing nations with new products.

6.Why do sociologists study corporations?

• Because of their influence on modern political systems.

• Because of their influence on modern economic systems.

7.Which statement best describes the meaning of the term limited liability?

• Shareholders do not have a direct voice in the daily operations of the corporation.

• Shareholders cannot be held financially responsible for the actions of the corporation.

8.What type of corporation provides developing nations with technology and capital?

• multinational

• conglomerate

9.How are interlocking directorates and conglomerates similar?

• They both create overlapping networks of powerful corporations.

• They both depend on a single board of directors.

10.How do defenders of multinationals argue their benefits?

• Multinationals rely on inexpensive labor.

• Multinationals provide developing countries with technology and capital.