8
QuizMultiple Choice

The Economic Impact of Slavery — Quiz

Question 8 • US History

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

Answer
A
Corporations enabled factories to hire large numbers of unskilled workers who worked long hours for low wages.
B
Corporations suppressed the development of an industrial economy in the Southern states.
C
Corporations allowed investors to invest without putting their personal property at risk, fueling the growth of new businesses.
D
Corporations changed how goods were made, bringing in innovations such as mass production.

Explanation

A corporation is legally separate from its owners, so investors generally risked only the money they put into the business, not their personal property. This limited liability made investing less risky and helped businesses raise money to expand during the 1800s. Therefore, the best choice is that corporations allowed investors to invest without putting their personal property at risk, fueling the growth of new businesses.

AI-written and checked against the verified answer.

Previous
Next