GED Social Studies : Opportunity Costs and Profit

Study concepts, example questions & explanations for GED Social Studies

varsity tutors app store varsity tutors android store

Example Questions

Example Question #1 : Opportunity Costs And Profit

A business that is founded by several investors collectively, who share a portion of the business and a portion of the profits is called a __________.

Possible Answers:

joint stock company

combined arms company

antitrust suit

stock trust monopoly

antitrust business

Correct answer:

joint stock company


A joint stock company is a large scale business whereby shares (or stocks) are owned by numerous individuals, thereby distributing the responsibility for the company, the risk involved for the individual, and the profits that can be made. The development of the joint stock company by the Dutch, Russians, English, and French at various times in the sixteenth and seventeenth centuries was a very important development in economic history, providing much of the means for Europe to gain great material wealth from the age of Colonialism.

Learning Tools by Varsity Tutors

Incompatible Browser

Please upgrade or download one of the following browsers to use Instant Tutoring: