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Corporations, Mergers, and Multinationals

Total questions: 45

Worksheet time: 27mins

Name
Class
Date
1.

What is multinational corporations ?

a)

a company that is primarily based in more than one country

b)

a company that is primarily based in one country

c)

a company that is primarily based in some countries

2.

On major advantage of a corporation is:

a)

Always have profits

b)

Limited Liability

c)

minimum failure

d)

All of the above

3.

Disadvantage of corporation is:

a)

Excessive tax filings

b)

Double taxation

c)

Independent management

d)

All of the above

4.

A corporation is a business for which ownership is divided into shares or stocks that may be bought and sold through a stock exchange.

a)

True

b)

False

5.

The shareholders may receive a part of the company's annual profit, if there is one, in the form of a dividend.

a)

True

b)

False

6.
Who owns a corporation?
a)
CEO
b)
CFO
c)
Stockholders
d)
Everyone
7.
What are bonds?
a)
Spies
b)
written statements that the borrower will repay the principal (amount of money borrowed) at some time in the future
c)
investors who own stock
d)
Men of mystery
8.
Do stockholders run the day-to-day operations of a corporation?
a)
Yes
b)
No
c)
Maybe so
d)
Sometimes
9.
What is limited liability?
a)
Being liable for all debts and losses
b)
Not being liable for all debts and losses
10.
Do corporations have a limited life?
a)
Yes
b)
No
c)
Maybe so
11.
What is double-taxation?
a)
Being taxed double the income tax of a partnership
b)
Tax on a business plus its shareholders' income
c)
Tax people have to pay for existence of corporations
12.
Limited liability of stockholders
a)
Advantage of a Corporation
b)
Disadvantage of a Corporation
13.
Transferable ownership rights
a)
Advantage of a Corporation
b)
Disadvantage of a Corporation
14.
Proof of ownership of part of a corporation
a)
Stock certificate
b)
Proxy
c)
Charter
d)
Capital funds
15.
Shareholders legally own the corporation.
a)
True 
b)
False
16.
Shareholders manage the corporation indirectly through the board of directors that they elect. 
a)
True 
b)
False 
17.
The board of directors decides on the company's policies and selects officers such as CEO, CFO, Treasurer, and etc. 
a)
True
b)
False
18.
This type of business is owned by many people called stockholders.
a)
Sole Proprietorship
b)
Partnership
c)
Corporation
d)
Franchise
19.
Nike, Google and Apple are examples of.....
a)
Sole Proprietorships
b)
Partnerships
c)
Corporations
d)
Franchises
20.
Advantages of this type of business include: selling stock to raise money, limited liability.
a)
Sole Proprietorship
b)
Partnership
c)
Corporation
d)
Franchise
21.

What is a Stock

a)

Car

b)

Animals

c)

the capital raised by a business or corporation through the issue and subscription of shares,

d)

Used in cooking

22.

How do you invest in stocks.

a)

Buy it online.

b)

You have to have a stock broker.

c)

Buy it from someone.

d)

You have to buy more then 12 shares.

23.

What is the differences between stocks and bonds?

a)

They are both investments.

b)

A stock is what corn grows on, and a bond gets you out of jail.

c)

Stock represents ownership, and bonds represents your word.

d)

A stock represents ownership, and bonds represents a loan.

24.

Dividends are_____?

a)

Money shareholders lose in stock.

b)

Money shareholders pay to buy stock.

c)

Stock that splits.

d)

Money shareholders received from stock profits.

25.
Stocks represent ownership in a corporation.
a)
TRUE
b)
FALSE
26.
A holder or owner of stock in a company or corporation.
a)
stock market
b)
shareholder
c)
portfolio
d)
industry
27.
Why does a company issue stock?
a)
to brag about their profits
b)
to attract money
c)
to gain publicity
d)
because it is required by law
28.

The possibility of losing some or all of a particiular investment.

a)

risk

b)

index

c)

industry

d)

profit

29.
The name for a part of a business that is bought and sold on the stock market is:
a)
Part
b)
Marker
c)
Stocker
d)
Share
30.
What is the stock market?
a)
A type of farmers market where people buy and sell food.
b)
A place where parts of businesses are bought and sold.
c)
A special type of grocery store that sells stocks.
d)
A type of bank that gives out loans to new businesses.
31.
As long as you are 18 years old and have some money, you can invest it in the stock market.
a)
True
b)
False
32.
Which is a franchisor?
a)
Starts a business
b)
Takes over a business
c)
Buys into an existing brand
d)
Allows others to use their brand name
33.

Franchiser owns the brand

a)

True

b)

False

34.

Franchisee does not have the right to use the brand

a)

True

b)

False

35.

Which of the following is not an advantage of the franchisee

a)

Can use an international brand

b)

Start up is fast

c)

Receives advice and training

d)

Can enter new markets

36.

Which of the following is the disadvantage of the franchisor?

a)

May loose local variety and choice

b)

Regular payments to franchisor

c)

looses Independence in running the business

d)

if badly run, the brand will suffer

37.
What is a franchise?
a)
Where a business sells the rights to their brand
b)
Where you have full control
c)
Where you keep all the profits
38.
When should you consider franchising if you want to expand your business?
a)
lack money
b)
lack time
c)
lack personnel
d)
all of above
39.
TRUE or FALSE - The Franchisee can benefit from using the brand name of the Franchise, as well as advertising and marketing
a)
TRUE
b)
FALSE
40.
True or False - There is no set up fee involved in setting up a Franchise
a)
TRUE
b)
FALSE
41.

What do managers do?

a)

Managers have the responsibility and power to look over an enterprise and make some decisions

b)

Managers have to boss the employees around

42.

The best definition of a nonprofit business:

a)

An organization that uses all profits to pay out dividends.

b)

An organization that uses donations to pay volunteers.

c)

An organization that uses profits (or surplus revenues) to reach a goal or goals instead of distributing them to shareholders.

d)

An organization that convinces the government to change a policy.

43.

Sources that fund a nonprofit business:

a)

direct mail and phone calls

b)

social media

c)

fund raising events (dinners, speakers, athletic events)

d)

all of these answer are correct

e)

website donations

44.

Nonrprofit businesses are effective ways to make changes in a community or culture.

a)

True

b)

False

45.

A great way to obtain a job or a scholarship is to prove that you have volunteered your time / effort for a nonprofit.

a)

True

b)

False

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