GED Social Studies : Opportunity Costs and Profit

Study concepts, example questions & explanations for GED Social Studies

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Example Questions

Example Question #1 : Terminology And Concepts

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

antitrust business

stock trust monopoly

antitrust suit

combined arms company

Correct answer:

joint stock company

Explanation:

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.

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