Incorporates, Corporates Flashcards
Incorporated means that
the process enables the company to become a separate legal entity from the owner
the business can survive even if the owner are no longer in the picture. It is
An Incorporate business
The business exists in its own right, it will operate on its own
Most production of goods and services are undertaken by
Incorporate Industries
Legal identity is distinct from owner except
Family based predominate Agriculture&Crafts and basic public services (Police, education)
relies on other businesses / Provided by government organizations
Consequences of Seperate Legal entity (4)
perpetual succession
propriety interest
debt (unlimited¬ on the owner)
sue or be sued in Company’s name
Before the industrial revolution, the biggest companies were
agricultural plantations (US)
Before the industrial revolution, Manufacturing was a
network of self-employed, home-based workers
Post Industrial revolution, what gathered workers in factories?
steam engine/powered machinery
Modern corporations date back to
2nd half of 19th century
Which companies thrived on a quasi-monopoly during the 2nd half of the 19th century
Colonial trading compagnies such as East India Company or The Hudson’s Bay Company
Which of the colonial trading compagnies was the most fully developed and instrumental as …
Spread of the Empire
Inventing the legal concept according to which a corporation is a separate entity from its owners.
Boston tea party
Why did the english increase the taxes to the products that came from colonies?
Because they needed money as they were conducting wars.
What did the americans do following the increase in taxes for the tea
They started to smuggle
Boston tea party
Which company didn’t keep the taxes imposed?
East Indian Company
What did the Americans do by way of revolution? where?
They threw in the ocean tea from 3 ships coming from England to Boston
This revolution led to independence.
Who wrote The Wealth of Nations?
Adam Smith
The Wealth of Nations
What were the principles defined in the book?
Big companies -> dangerous for democracy
State should limit their power before they become more powerful than certain states.
What are Chartered Compagnies
Privately owned compagnies in charge of activities corresponding to public services
What does Chartered Compagnies need to be put in place
Permission from the government to operate those public services
Most for a limited amount of time
What started limited liability in the UK? When?
Joint stock companies registration and regulation act in 1844
In which document should companies must be incorporated and registered in?
The Registrar of joint stock companies
Which of the Joint stock companies registration and regulation act implemented limited liability?
act 1856
Who started limited liability in the US? When?
New York state in 1811
then similar statuory regimes in majority of other states by 1860
When was the “santa clara county vs. southern pacific railroad / us supreme court”
1866
Which amendment of the US constitution states : ‘no state shall deprive any person of life, liberty or property’
The 14th amendment
