SOC208H5 Final: SOC208-FINAL-TEST-NOTES
Document Summary
Definition: a company/group of people that is authorized to act as a single distinct entity. Act this point, they would get a grant/charter from the crown, this would facilitate the intro of a guarantee of monopoly regarding trading rights on behalf of the merchants. In the colonial era- monarchs gave corporations a specific public mission, in exchange for their right to exist. Corporation needed to service the interests of the monarch/investors. Over time there was greater demand across the business world to pool economic resources, and to encourage new businesses and generate capital. Hesitation on investors in unlimited liability: pressure for limited liability. Lose what they put in, can"t necessarily be sued: unlimited: they can be sued. Stimulates growth by encouraging investors, spread of contributions across ventures. Unassailable right- corporations don"t have to fight for this right. Refers to the fact that there"s no individual person held accountable.
