1- An advantage of a corporation is that_________(1 point)

• the business is subject to little government intervention.
• owners have direct and immediate control over daily management of the business.
• owners pay fewer taxes than owners of other forms of business.
• owners have limited liability for debt.

2- Which of the following examples describes a publicly held corporation?(1 point)

• A nation-wide fast-food chain is owned and operated by the same family that founded it. Nobody holds stock in the fast-food chain.
• A small restaurant chain, founded and operated by a single family, is owned by shareholders who purchase their shares on the stock exchange.
• A local jewelry store is owned by its founders who hold but do not sell shares in the company.
• A local gaming cafe is owned and operated by the same group of friends that founded it years ago. Nobody holds stock in the gaming cafe.

3- Which of the following is a stock exchange in the United States?(1 point)

• Universal Partnership Exchange
• Securities and Exchange Commission
• New York Stock Exchange
• U.S. Public Investment Exchange

4- Amelia has laid the groundwork for a fledgling business and is considering incorporating. Which of the following is a valid concern that she might have?(1 point)

• Incorporating comes with an increase in liability compared to other business structures.
• The corporation will only last as long as she is able to work.
• Acquiring financing as a corporation will be much more challenging than it is for other business structures.
• The regulations will be more burdensome than in other business structures.

5- What are the primary differences between a bond and a stock?(1 point)

• Stocks are units of ownership in a corporation, while bonds are contracts that specify duties to the corporation.
• Stocks are units of ownership in a corporation, while bonds are contracts that specify duties to the corporation.
• Stocks are certificates debt, while bonds are units of ownership in a corporation.
• Stocks are contracts that specify duties to the corporation, while bonds are units of ownership in a corporation.
• Stocks are units of ownership in a corporation, while bonds are certificates of debt.