Which of the Following Statements Is True Regarding Employee-Owned Corporations

question 138

Multiple Choice

Which of the following statements is true regarding employee-owned corporations?

• A) The number of employee-owned corporations is declining in North America.
• B) Employee-owned corporations may not publicly trade their stock.
• C) Employees buy shares of stock in the company that employs them.
• D) Stock prices in employee corporations typically decrease.

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Definitions:

Labor Skills

The abilities and expertise that workers possess, which can affect their productivity, efficiency, and the quality of work produced.

Capital

Financial assets or resources that individuals or businesses use to invest, produce, and create economic value.

Technology

The technological knowledge available in an economy at any given time. The level of technology determines the amount of output we can generate with our limited resources.

Law of Comparative Advantage

The principle that a country should specialize in producing and exporting goods in which it has the lowest opportunity cost compared to others.