Calvert Is Contemplating Building an Aluminum Smelting Plant

question 14

Multiple Choice

Calvert is contemplating building an aluminum smelting plant. The ratio of bauxite, the raw material from which aluminum is extracted, to aluminum is two to one. It takes two tons of bauxite to product one ton of usable aluminum. Calvert should locate his smelting plant close to

• A) his customers.
• B) the bauxite mine.
• C) transportation.
• D) an area with a suitable labor supply.

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Definitions:

Shareholders

Individuals or entities that own one or more shares of stock in a corporation, thus having a financial stake and certain rights in the company.

RMBCA

The Revised Model Business Corporation Act (RMBCA) is a set of model laws prepared by the American Bar Association to provide a standard for the governance of corporations.

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