a. A corporation is defined as a business that is owned by a single person.
b. A corporation is defined as a business that operates in more than one country.
c. A corporation is defined as a business owned by people who buy shares of stock.
d. A corporation is defined as a person that employs over 100 people.
81. A corporation is said to have limited liability. What does limited liability mean?
a. Investors are liable for the debts of the business only up to the total value of their
personal assets.
b. Investors are liable for the debts of the business only up to the value of their investment.
c. A corporation is not liable for its actions and cannot be sued.
d. Investors are protected against the loss of their investment in the business.
82. Which of the following would be considered an asset of the XYZ corporation.
a. the total value of outstanding XYZ corporate stock.
b. the total value of outstanding XYZ corporate bonds.
c. the total sales revenue earned by XYZ corporation in one year.
d. the value of the XYZ corporations buildings, machinery, and furnishings.
APPENDIX 7.1
Slavery in the United States, 1776 1865
1. Which of the following is one of the important differences in northern farms and farms in the
southern United States before the Civil War?
a. Farms in the north were, on average, much larger in size than those in the south.
b. Farms in the north were, on average, much more valuable than those in the south.
c. Farms in the north relied more heavily on slave labor than those in the south.
d. Farms in the north tended to have less productive land than the large plantations in the
south.
2. A direct cause of the Civil War was the attempt to expand slavery into the western United
States. Why did slave owners want to expand into the West?
a. The practice of planting only one crop tended to deplete the soil in the South.
b. The governments of some southern states began to outlaw slavery.
c. There were more slaves in the West than in the South.
d. Northerners were moving into the South, so the slaveowners had to move West.