Management and Organizational Studies 2275A/B Chapter Notes - Chapter 15: Transact, Unsecured Debt, 18 Months

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2275A/B
• Professor: Cristin Keller

Document Summary

The corporation defined: predominant business vehicle in modern commerce because it is a separate legal identity. It means that the corporation alone is responsible for its own debts and other liabilities. Should the corporation fail to make good on its obligations, the shareholders are not responsible for the default. The most they stand to lose is the purchase price of their shares. Internal stakeholders are those who have either a direct or indirect role in governing the corporation and determining its mission and how it will be achieved: shareholders do not have any direct authority to manage the corporation. These acts embody different models or prototypes as to how the corporation comes into existence. First, shares of the private corporation are not publicly traded and therefore the (cid:272)orporatio(cid:374)"s fi(cid:374)a(cid:374)(cid:272)ial figures are (cid:374)ot a(cid:448)aila(cid:271)le to the public. This allows the corporation to keep much information confidential.