Home / Questions / Corporations account for approximately what percentage of business activity in the
Corporations account for approximately what percentage of business activity in the
United States?
a. 95 percent
b. 90 percent
c. 81 percent
d. 50 percent
e. 30 percent
107. The biggest percentage of corporate receipts in the United States is accounted for by
which type of organization?
a. sole proprietorships
b. small corporations
c. large corporations
d. small partnerships
e. large partnerships
108. Which of the following statements is false with respect to stock ownership?
a. Most stockholders have had some college.
b. Most stockholders earn more than $50,000 a year.
c. About half of all stockholders are 44 or younger.
d. Most stockholders hold more than $50,000 worth of stock.
e. Most stockholders are men.
109. An example of direct stock ownership is when a person
a. pays into a pension fund that buys stocks
b. puts money into an insurance company that buys stocks
c. invests money in a mutual fund that buys stocks
d. asks a stockbroker to buy stocks for him or her
e. puts funds into a trust fund that buys stocks
110. Indirect stock ownership means that a person
a. buys stocks through a stockbroker
b. puts money into financial intermediaries that buy stocks
c. has a friend buy stocks so that the IRS won’t know about it
d. puts money into a partnership rather than a corporation
e. buys bonds instead of stocks when the interest rate is high
111. Taking into consideration indirect stock ownership in the United States, we can conclude
that
a. stock ownership is on the decline
b. the majority of the population are stockholders
c. all businesses are in fact corporations
d. too much cheating is going on in the stock market
e. we should change the laws so that pension funds can buy stocks
112. A corporation that operates in several countries, but produces all of its output in its
domestic country, is called a(n)
a. sole proprietorship
b. international partnership
c. multinational corporation
d. international corporation
e. domestic corporation
113. The difference between an international corporation and a multinational corporation is
that the international corporation
a. produces in North America while the multinational corporation produces worldwide
b. sells its products in North America while the multinational corporation sells its
products worldwide
c. sells only products while the multinational corporation sells products and services
d. produces only in the home country while the multinational corporation produces in
two or more countries
e. exports goods and services while the multinational corporation imports goods and
services
114. Reasons why a corporation could choose to produce in another country include all of the
following except
a. lower labor costs
b. avoid overseas transportation costs
c. limited liability
d. circumvent tariffs
e. lower resource costs
115. The top U.S. multinational corporation in terms of both revenues and assets is
a. McDonald’s
b. Citicorp
c. Microsoft
d. Ford
e. Exxon
116. Of the top-10 U.S. multinationals, the majority are in which of the following two
industries?
a. oil and automobiles
b. banking and energy
c. services and fast food
d. clothing and entertainment
e. computers and soft drinks
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