Management and Organizational Studies 2275A/B Chapter Notes - Chapter 15: Legal Personality, Sole Proprietorship, Shelf Corporation

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

Document Summary

Chapter 15 the corporate form: organizational matters. The corporation is the predominant business vehicle in modern commerce because it is a separate legal entity. For this reason, it is able to remedy many of the shortcomings associated with the other prevalent business forms the sole proprietorship and the partnership. The corporation has a legal existence and, as such, is treated in law as a person. That said, the corporation is an artificial entity whose activities are controlled entirely by human beings. A stakeholder is one who has an interest in a corporation. The internal stakeholders are not the only stakeholders. The corporation have dealings with or are affected by the corporation but do not have an explicit role in governing the corporation. Before people decide to do business through a corporation, they must make a number of decisions prior to preparing and filing incorporation documents.