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Econ 8.3

The federal government issues a company’s certificate of incorporation:
false
What is a certificate of incorporation?:
A license to form a corporation issued by the state government
If you buy stocks, you own part of a corporation.:
true
Privately held corporations are also closely held corporations.:
true
Dividends represent a portion of corporate profits:
true
What defines a corporation?:
A business owned by individual stockholders
What does the limited liability of the owners of stock in a corporation mean?:
The stockholders of a corporation can lose only what they have invested in the corporation
A conglomerate merges more than three companies making unrelated products.:
true
Stockholders must pay a capital gains tax whenever they sell their shares:
false
Publicly held corporations sell stocks to the Securities and Exchange Commission.
false
Corporate bonds pay dividends.:
false
What percentage of the net income earned in the United States is generated by corporations?:
70%
Multinational corporations usually headquarter in several countries:
false
What is the term for the joining of two or more firms involved in different stages of producing the same good or service?:
vertical merger
Companies in the same business might form vertical mergers:
false
Corporations have a legal identity:
true

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