ADMS 1000 Lecture Notes - Double Taxation, Information Asymmetry, Mci Inc.

• School: York University
• Department: Administrative Studies
• Course: ADMS 1000
• Professor: All

Document Summary

Lecture 3 the social context & corporate governance may 22. An artificial being that can engage in all forms of business activities (canada. A business organization that is recognized by the law as having a separate legal existence can be sued, hold property and incur debt. Less than 20% of businesses are corporations but they account for 90% of all business revenues (in the us) Advantages (relative to sole proprietorships and partnerships): access to capital, infinite life, limited liability, transferability and liquidity of ownership. Disadvantages: double taxation, costs and disclosure, principal/agent problem governance! The system by which business corporations are directed and controlled. The corporate governance structure specifies the distribution of rights and responsibilities among different participants in the corporation, such as, the board, managers, shareholders and other stakeholders, and spells out the rules and procedures for making decisions on corporate affairs.