Corporations are the most common form of business organization and are established as a legal entity separate from its constituent members or shareholders. In a corporation with shares, ultimate responsibility is usually allocated to the board of directors, which is elected by shareholders and accountable to them. All persons, regardless of their position in the corporation, including directors and officers, are evaluated in reference to the fundamental purpose of the corporation. Beyond electing the board of directors, shareholders do not participate in the decision making and operation of the organization. Decision makers in a corporate context, as anywhere else, are liable for the consequences of their decisions. Where the decisions are within the legal authority of the decision maker, liability for the consequences remains with ...

  • Loading...
locked icon

Sign in to access this content

Get a 30 day FREE TRIAL

  • Watch videos from a variety of sources bringing classroom topics to life
  • Read modern, diverse business cases
  • Explore hundreds of books and reference titles