Chapter 2: Constitutive Corporate Decision Flashcards
What are Constitutive Decisions
It is the decision involving a choice between at least 2 alternatives
What is the aim on Constitutive Decisions
To select the alternative with the greatest possible utility
What are the Legal forms of the company (Definition)
A collective description for all legal provisions that turn a company into a legally definable entity
What is the Classification of Legal forms
Sole Traders: no business assets
Partnerships: Joint Owners
Entities: Owe business assets
What are the Characteristics of Legal Forms
Legal Basis
Company
Foundation
Management
Liability
Taxation
What is a Power of Attorney
It provides authorisation for all kinds of transactions and legal actions relating to the operation of a commercial entreprise in and out of court
What are the 2 Workforce Co-determination
1) Co-determination under labour laws
2) Co-determination within the company
What is a Limited Commercial Partnership (KG)
A Partnership aimed at the operation of a trading entreprise with a joint firm
What is a Limited Company (GmbH)
A Partnership that pursues a freely defined purpose
What is a Public Limited Company (AG)
A Joint Stock Corporation that pursues freely defined purpose
What are the 3 types of Location Planning
Based on Economic Considerations
Based on Operative Considerations
Based on Internal Considerations
What are the 3 Location Factors
Cost side
Sales side
Sociocultural factors
What are the criticism on Scoring Model
Subjective Result, Lacking Verifiability
Best of a bad bunch of alternatives
What is the criticism on Cost Comparison Method
Only compares costs => revenues must be identical
Static method of investment calculations
