Management and Organizational Studies 2275A/B Chapter Notes - Chapter 15: Transact, Debenture, Crowdfunding

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

Document Summary

The corporation defined: predominant business model, operates as a separate legal entity from the owners. The corporation alone is responsible for its own debts and other liabilities. If the corporation performs badly, the shareholders only risk losing their investment (can"t go after them personally) Stakeholders in the corporation: the corporation is treated as a person in law, all of the corporations decisions, formulated policies and contracts are only done through humans. These people are called shareholders: shareholders do not have any direct authority to manage the corporation, shareholders elect the board of directors members. Pre-incorporation issues: if choosing to form a corporation, must choose: Both governments have the ability to approve corporations. The models for approving corporation is different for each legislative body. Are owned by shareholders who have limited liability. Are managed by directors who owe fiduciary duties to the entity. Federally incorporated companies can carry on business in any province.