Question

12 my friend is starting a corporation and wants me to invest. what happens if i do? a i give my friend money and he promises to pay me back later. b i give my friend money and he gives me shares of stock in the corporation. c i give my friend a promissory note and he gives me money of equal value d my friend gives me money and i draw up a memorandum of understanding 13 if i own five oil companies, i may put them all together in a a trust b corporation c multinational conglomerate d umbrella company 14 its the late 1800s, and big businesses are driving up prices. a its okay, the government will stop it. b its okay, the market will regulate itself. c thats too bad. the government wont do anything about it. d customers will force those businesses to lower their prices.

Explanation:

1. When investing in a corporation, typically an investor gives money and receives shares of stock. Option A is more like a personal loan, option C is an incorrect flow of assets, and option D is the wrong direction of money - giving.
2. A trust can be used to combine multiple companies under one entity for management and control. A corporation is a single legal entity, a multinational conglomerate is a large company with operations in multiple countries, and an umbrella company is more of an over - arching administrative entity.
3. In the late 1800s, the government had limited intervention in business affairs, and the market was largely left to self - regulate. The government did not have the same level of regulatory power as today, and customers did not have as much collective power to force price changes.

Answer:

1. B. I give my friend money and he gives me shares of stock in the corporation.
2. A. trust
3. B. It's okay, the market will regulate itself.