MGSC30H3 Lecture Notes - Lecture 3: Debenture, Profit Motive, Decision-Making
Document Summary
Need to know when you have a legal agreement. Ppl need to know for sure when they have a contract. If someone acts as a parent authority & the other party believe they have the authority to enter into the agreement. You have trust that the corporation has the agreement. Do corporations actually conduct business like natural persons: exclusive profit motive. Why thyere rich, instability: relationship to risk, decision making cannot truly be defused within the whole, problem of short term management incentives, diff b/w corporations & ppl they will take risks that no sane person will. Corporations get distorted by ppl making deciisons on their behalf. Ppl making decisions may be motivated by other incentives, bonus, profitability, increase worth: headings when you change topics. Otherwise try to be as understandable as possible. A name search on the proposed name of the corporation.
