Lincoln — Cumulative exam

Question 47 • LCS-Teacher Remediation-M/J United States History_Q3

Which best explains how the invention of corporations contributed to the economy in the 1800s?

Answer

Corporations allowed investors to invest without putting their personal property at risk, fueling the growth of new businesses.

Corporations enabled factories to hire large numbers of unskilled workers who worked long hours for low wages.

Corporations changed how goods were made, bringing in innovations such as mass production.

Corporations suppressed the development of an industrial economy in the Southern states.

Explanation

Corporations could raise money from many investors while limiting each investor’s liability to the amount invested. This meant investors generally did not risk losing their personal property if the business failed, encouraging more people to fund new businesses and helping the economy grow. The best choice is A, which describes this effect.

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