ECO-Corporations, MergersGrade 11

• Economie
• Secondary Education

What is a stock?

Chapter 8.3

Corporations, Mergers, and Multinationals

Pages 238-247

Definitions

Corporations are the third main kind of business organization. 

A corporation is a business owned by individuals, called shareholders or stockholders. 

The shareholders own the rights to the company’s profits, but they face limited liability for the company’s debts and losses. 

These individuals acquire ownership rights through the purchase of stock or shares of ownership in the corporation. 

What is if the company does well and earns a profit, you might receive a payment?

1. Income
2. Earnigs
3. Profit
4. Dividend

What is a business owned by individuals, called shareholders or stockholders?

1. Partnership
2. Sole proprietorship
3. Corporation
4. Limited partnership

What is the difference between private and public corporations? Read the example on page 238. Why could Frank and Shirley not find the protection from unlimited liability they wanted in a limited liability partnership?

What are the different characteristics of a corporation?

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How might the advantages of corporations help explain why more corporations than other kinds of businesses take in $1 million or more a year?

Which disadvantage of corporations might be the most significant? Explain

What is a contract issued by a corporation that promises to repay borrowed money, plus interest, on a fixed schedule?

1. Shares
2. Capital
3. Bonds
4. Stock

What is that a corporation continues to exist even after an owner dies, leaves the business, or transfers his or her ownership.?

1. Limited Life
2. Unlimited Life
3. Limited Liability
4. Unlimited liability

Discuss what possibilities there are for entrepreneurs who prefer partnerships over corporations but who wish to avoid unlimited liability.

F & S was successful as a partnership. What will Frank and Shirley gain by making their company a corporation?​

What is that the business owner’s liability for business debts and losses is limited?

1. Limited Life
2. Unlimited Liability
3. Unlimited Life
4. Limited liability

Give the main terms of the lesson.