SOC208H5 Study Guide - Final Guide: Neoliberalism, Environmental Crime, Conflict Avoidance
Document Summary
Corporations: a company or group authorized to act as a single entity recognized by law, there is a greater demand to pool resources, encourage business and generate capital, try to avoid unlimited liability. Depending on the way a business is organized and structured, the owners may be liable for the entire debts and obligations of the business or liable for a certain percentage of the organization"s debts and obligations. The owners of certain types of business organizations, such as sole proprietorships and general partnerships, are subject to unlimited liability. The shareholders in corporations and the members of businesses organized as limited liability entities are only liable for the debts and obligations of the organization to the extent of their investments, and enjoy protection of personal assets. Limited liability corporations use this model: shareholders are responsible for what they invest, pool resources for practical and economic benefits, few risks beyond investment, encourages investors, spread of contributions across ventures.
