Question

Which one of the following is a correct statement about corporations?

A. Most businesses in the United States are corporations.
B. A corporation is treated as though it were an actual person.
C. If a corporation fails, the stockholders lose all their money.
D. Stockholders hire the people who manage a corporation.

The money a bank pays depositors for the right to use their money is called
A. reserve.
B. interest.
C. investment.
D. credit.

Answer 1

In the first question, the correct answer is C - If a corporation fails, the stockholders lose all their money.

Corporations are usually, if not all of the time, being shared between different investors and stockholders. All of these people invested a portion of their money for a percentage of the company.

The correct answer for your second question is D - a credit.