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

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

Document Summary

The corporation defined: the corporation is a separate legal entity it is able to remedy many of the shortcomings associated with the other prevalent business forms the sole proprietorship and the partnership. Stakeholders in the corporation: the corporation is an artificial entity whose activities are controlled entirely by human beings these individuals, or groups of individuals are often referred to as the internal stakeholders of the corporation. Who may own shares: a share is a piece of property and is freely transferable unless there is a restriction in place. In widely held corporations, shares are almost always freely transferable (purposes of being on the stock exchange) It states that the shareholder wishing to sell must first offer her shares to the directors at the same price she has negotiated with the outsider. Financing the corporation: to finance a company, they have two basic means of doing so, borrow money (debt financing)