The Economic Impact of Slavery

Question 1 • DRHS GA-GSE US History A

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

Answer

Corporations allowed investment without risk of personal property, 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 like mass production.

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

Explanation

Corporations could raise money from many investors, and shareholders generally risked only the money they had invested rather than their personal property. This limited personal financial risk and encouraged people to invest in new businesses, helping the economy grow. Choice A best describes this effect.

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