Question

subject:law and ethics

1.corporation is a legal person

2.distinction between federal and provincial incorporation

3.share structure of a corporation

4.how a corporation is created, financed and regulated

Chapter 6 (Ch. 15) covers the following important The Organization Form areas: * Corporation is a legal person * Distinction between federal and provincial incorporation * Share structure of a corporation * How a corporation is created, financed and regulated

Answer 1

Corporation - It is a legal entity seperated from its owners. It enjoys most rights and responsibilities that a individual person enjoys. They can enter into contracts, take loans and borrow money, sue and be sued, hire employees, own assets, and pay taxes therefore it is referred as legal person.

2) Provincial Incorporation: Once incorporated in one of the area, the company can use company's name and conduct business in that sector in that province. To do business in another province, the company will need to register with that authority in the other province

Federal Corporation: The company can use its name throughout the territory of the country without need to register individually in each province. There is increased business name protection and wider rights to carry on business throughout the territory

3) Structre of corporation

1)Shareholders at hightest level - owners

2) Board of directors with chairman as head - make decisions on future of the company

3) Executive of the company with its head as CEO - follow the path laid out by the directors

4) How a corporation is created, regulated and financed

The companies are created and regulated by the processes laid out by the country through their corporate laws. The companies are of different types based on shareholding, type, function etc

The companies are financed via various channels like shareholders money, investors money, loans, profits generated etc