Corporate Governance MG 5326 Class 1 Definitions and concepts.
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Corporate Governance MG 5326 Class 1 Definitions and concepts
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Transcript of Corporate Governance MG 5326 Class 1 Definitions and concepts.
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Corporate GovernanceMG 5326
Class 1Definitions and concepts
![Page 2: Corporate Governance MG 5326 Class 1 Definitions and concepts.](https://reader030.fdocuments.in/reader030/viewer/2022032703/56649d0d5503460f949e1556/html5/thumbnails/2.jpg)
Forms of business ownership
• Corporations and companies– Creates a distinct person by certificate of
incorporation or letters patent– Permits separation of ownership and control– 4 possible positions for an individual
• Incorporator• Shareholders• Directors• officers
copyright 2010 Janis Riven 2
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Principal characteristics of a corporation
• Liability and the corporate veil– Exception = directors can be liable…
• Transfer of ownership through shares– Does not affect the existence of the
corporation
• Immortality• Raising capital– Through debt or equity (preferred or common)
copyright 2010 Janis Riven 3