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The corporation chapter 1

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The corporation chapter 1

  1. 1. CHAPTER 1 DISCUSSION QUESTIONS1) Who were jobbers?2) In 1720, what did the English Parliament do in response to corporate high jinks?3) What was the South Sea Company?4) What did the Bubble Act make a criminal offense?5) What is the genius of the corporation as a business form and its reason for its remarkable rise?6) What does "limited liability" mean?7) How did NJ & Delaware seek to attract valuable incorporation business to their jurisdictions?8) Between 1898 & 1904, America went from having 1,800 corporations to having how many?9) By the end of the 19th century, courts had fully transformed the corporation into a what?10) In 1886 the Supreme Court decided that corporations should be protected by what Amendment?11) In 1908, AT&T launched an advertising campaign, the first of its kind, that aimed at doing what?12) What term is used to describe the trend of corporations crafting softened images of themselves withpromises of good corporate citizenship & practices of better wages & working conditions?13) What package of regulatory reforms designed to restore economic health by, among other things, curbingthe powers & freedoms of corporations, did President Roosevelt create in 1934?14) What was formed in 1973 which operated in cartel-like fashion to control the worlds oil supply?15) What was introduced in 1948 that enabled corporations to take advantage of their newfound mobility withoutsuffering punishing financial penalties?16) The deregulatory logic of economic globalization was deepened in 1993 with the creation of what?17) Fill in the blank: Corporations now ______________ society, perhaps more than governments themselves do.18) What do corporations use today to create unique & attractive personalities for themselves?
  2. 2. WHAT COMES TO MIND WHEN YOU HEAR/READ THE WORD “CORPORATION” CORPORATION VS BUSINESS
  3. 3. WHAT IS A CORPORATION?CLIP 1: WHAT IS A CORPORATION?
  4. 4. -CORPORATION: A GROUP OF INDIVIDUALS WORKING TOGETHER TO SERVE AVARIETY OF OBJECTIVES.-“CORPUS”: LATIN “BODY OF PEOPLE.”-THE MAIN OBJECTIVE:-TO EARN LARGE, GROWING, SUSTAINED, LEGAL RETURNS ($$$) FOR THEPEOPLE WHO OWN THE BUSINESS.-FORMS: -BUSINESS -GOVERNMENT -POLITICAL -RELIGIOUS -CHARITABLE (NON-PROFIT)
  5. 5. ADVANTAGES/DISADVANTAGESADVANTAGES:1) LIMITED LIABILITY -A PERSON’S FINANCIAL LIABILITY IS LIMITED TO THE VALUE OF A PERSON’S INVESTMENT2) PERPETUAL SUCCESSION -THE CONTINUATION OF A CORPORATION’S EXISTENCE DESPITE THE DEATH, BANKRUPTCY, EXIT FROM THE BUSINESS, ETC. OF ANY OWNER/MEMBERDISADVANTAGES:1) COST & TIME TO ESTABLISH & MAINTAIN2) LEGAL REQUIREMENTS & REGULATORY RED TAPE
  6. 6. THE CORPORATION HAS BECOME THE WORLD’S DOMINANT ECONOMIC INSTITUTIONWE ARE INESCAPABLY SURROUNDED BY THEIR CULTURE, ICONOGRAPHY, & IDEAOLOGYCORPORATIONS:GOVERN OUR LIVESDETERMINE WHAT WE EATWHAT WE WATCHWHAT WE WEARWHERE WE WORKWHAT WE DO
  7. 7. “THE CORPORATION’S DRAMATIC RISE TO DOMINANCE IS ONE OF THE REMARKABLE EVENTS OF MODERN HISTORY, NOT LEASTBECAUSE OF THE INSTITUTION’S INAUSPICIOUS BEGINNINGS.” HISTORY CLIP 2: BIRTH & EVOLUTION
  8. 8. THE RISE OF THE CORPORATION IN EUROPE•EARLY ON, THE CORPORATION WAS ENGULFED IN CORRUPTION & FRAUD.•JOBBERSSTOCKBROKERS WHO PROWLED LONDON’S COFFEE SHOPS IN SEARCH OF INVESTORS TO SELL SHARES INBOGUS COMPANIES.•SOUTH SEA COMPANY:CORPORATION FORMED TO CARRY ON EXCLUSIVE TRADE (MONOLOPY) WITH SPANISH COLONIES OF SOUTHAMERICA. IN EXCHANGE, IT ASSUMED THE NATIONAL DEBT ENGLAND INCURRED DURING THE WAR OF SPANISHSUCCESSION.•SOUTH SEA BUBBLE:TO WIN OVER POLITICIANS, THE COMPANY GAVE STOCKS IN THEIR BUSINESS. THE POLITICIANS THEN SOLDTHEM BACK TO THE COMPANY FOR PROFIT.•BUBBLE ACT:CRIMINAL OFFENSE TO CREATE A COMPANY PRESUMING TO BE A CORPORATE BODY & TO ISSUE TRANSFERABLESTOCKS WITHOUT LEGAL AUTHORITY.•1720: ENGLISH PARLIAMENT OUTLAWED THE CORPORATION.
  9. 9. THE RISE OF THE CORPORATION IN AMERICA GREW OUT OF THE INDUSTRIAL REVOLUTION (MID 1700‘S - MID 1800’S)-INDUSTRIALIZATION IN AMERICA INVOLVED 3 IMPORTANTDEVELOPMENTS:1) TRANSPORTATION2) ELECTRICITY3) TECHNOLOGY
  10. 10. THE RISE OF THE CORPORATION IN AMERICA GREW OUT OF THE INDUSTRIAL REVOLUTION (MID 1700‘S - MID 1800’S)-INDUSTRIALIZATION IN AMERICA INVOLVED 3 IMPORTANTDEVELOPMENTS:1) TRANSPORTATION2) ELECTRICITY3) TECHNOLOGY

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