Unit 2: Lesson 9: Background on Corporations (Reading)

Question 1

Firms

Answer 1

Units of ownership engaged in business activities.
- Firms are usually designed to achieve max profits by providing goods/services for which customers are willing to pay.

Question 2

5 business ventures

Answer 2

Sole proprietorship, partnership, corporation, co-operative, or government enterprise

Question 3

Corporation

Answer 3

Or limited company

Question 4

Shares of public or private corporations can be…

Answer 4

Be publicly or privately traded

Question 5

Article of incorporation

Answer 5

A legal document, filed with the government that incorporates a business

Question 6

Government assets are divided into equal parts called

Answer 6

Shares

Question 7

Shareholders

Answer 7

Owners of a corporation
- Investors don’t have responsibility for running the business in its day-to-day

Question 8

Corporations offer 2 ownership shares:

Answer 8

Common shares:
- Provide a shareholder with voting rights

Preferred shares:
- Give a shareholder a preferential position in regard to profits/assets, but no voting rights

Question 8

Shareholders can vote on decisions at…

Answer 8

annual general meeting in person or by proxy
- Proxy: A doc signed by shareholder appointing another person to vote on their behalf