ADMS 1000 Lecture 3: week 3

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ADMS 1000 Full Course Notes
12
ADMS 1000 Full Course Notes
Verified Note
12 documents

Document Summary

Do corporations have a duty to behave in an ethical and social responsible manner: chapter 8: pg 174-187, the structure of corporations (handout, case study: 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 proprietorship 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 rights and responsibilities among different participants in the corporation, such as the board, managers, shareholders and other stakeholders, the spell out the rules and procedures for making decisions on corporate affairs.