Lecture 18 notes - LECTURE3/17/2009...

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LECTURE 3/17/2009 Who Controls the Corporation? o What is a corporation § A separate legal entity unto itself, the legal status of a person ú Can sue a corporation just you do a person § Pieces are distributed as stock, and you collectively the owners of stock own  the firm § what’s interesting is that the stock holders are not really responsible for firm’s  decisions…limited liability § legally required to have a board of directors…three people ú board is elected by stock holders § Useful to incorporate because you can sell your stock publicly to generate an  enormous amount of resources § Disadvantages ú Stockholders can seize control of the firm The founder can get pushed out and not even be able to take his name with  him § Historians believe that into the 1900s most US corporations were controlled 
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This note was uploaded on 01/23/2011 for the course SOCIOLOGY 315 taught by Professor Mizruchi during the Winter '09 term at University of Michigan.

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Lecture 18 notes - LECTURE3/17/2009...

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