Class Notes (839,458)
Canada (511,348)
Philosophy (1,521)
PHL295H1 (22)
all (6)
Lecture 4

PHL295 Week 4 Lecture

3 Pages

Course Code

This preview shows page 1. Sign up to view the full 3 pages of the document.
Week 4 October-02-13 9:26 AM Continued from Last Week: Reading: Coase Williamson- Firm: Corporation  Descriptive argument: how the shape of the firm will change  Trying to explain why are things the way they are 5 Main Features of a Corporation 1. Legal Personality- "Nexus of contracts" - nexus for contracts- a firm can have contracts o Separate patrimony: 3 rules  Entity Shielding:  Authority- Board of Directors  Procedures for Law suits- when corporate law wants to sue, they can sue the entity as a whole o Reasons why there are legal personalities o Misleading: Corporation might have "mental problems" o Legal entity separate from its owner because of the 3 rules 2. Legal Liability: the owners are only liable for their own money the put in the corporation- When creditors o Owners shielding- assists are protected o Entity + Owner Shielding= Asset Partitions 3. Transferrable Shares o Open/Public vs. Closed/private  Listed /Publicly traded  Unlisted o Open- no restrictions/Close- restrictions o Closely Held vs. Widely Held- difference between buying shares 4. Centralized Management: Board directors 5. Investors are Owners o 2 key elements of Ownership of the Firm  Right to control the firm  The right to have appropriate of Residual Earnings Corporate Law Shareholder and Owners Primacy View: Interests and wills are primary Reading 1: The Modern Corporation and Private Property  Property rights come from ownership and applies control  Managers are trustees for shareholders o Fiduciary Obligations to shareholders - act in someone`s interests ex. lawyers o Shareholders interests are primary Reading 2: Freudman: Capitalism and Freedom  Argument: Freedom- government should protect freedom and avoid constriction of power- threat to freedom  Government powers should be dispersed  Limit Government power- 2 reasons o Protective- Liberty o Constructive- great advances in society= liberty - advances of civilization- wealth maximization  Liberty or Wealth- they do not go together all the time- which value is more important  School of Thought: Liberalism- values liberty then anything else- it is the most important value according to Freudamn  Freedom is the most affective way to promote wealth
More Less
Unlock Document

Only page 1 are available for preview. Some parts have been intentionally blurred.

Unlock Document
You're Reading a Preview

Unlock to view full version

Unlock Document

Log In


Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.