5.3 Corporations
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What role does the Securities and Exchange Commission fulfill with regard to corporations?
It regulates the stock market.
The owner of a factory that manufactures clothing buys several clothing stores to sell the clothing the factory produces. This is an example of
a vertical merger.
What does the board of directors in a corporation do?
make all major decisions for the corporation
Do multinationals have more or fewer regulations than corporations that are in just one country?
more, because they have to obey laws and pay taxes in more than one country
What happens to the stockholders when a corporation files for bankruptcy?
The owners can lose only the money they have invested.
