lecture3a - Lecture 3a The Corporation Form and Other Ways...

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1 Lecture 3a The Corporation Form and Other Ways of Organizing Production: Legal Background Start with corporate form : What is a corporation? 5 core characteristics of corporations: separate legal identity limited liability transferable shares delegated management with a board structure investor ownership (Note: some of these characteristics also apply to other forms of organization.) Look at each of these separately: 1. Separate legal persona: this means that the firm is a separate entity that can own assets and enter into contracts, separate from its owners and managers. Note: firms can produce without being incorporated.
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