ASSIGNMENT COVER SHEET
Learner: Terry L Green
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During this time, the concept of a corporation was not what think of today. Corporations were small, government-sponsored institutions chartered by the monarchy for a specific purpose. That purpose was to bring together investors interested in financing large projects. The monarch who granted the charter kept a close watch on these corporations and did not hesitate to revoke charters if they were not happy with the operations and profitability of the corporation. Investors were liable for any harm or loss caused by the company. In this paper, this writer provides responses and amplifications for five questions presented in this week’s reading. The responses and amplifications attempt to provide some clarity on the creation and responsibilities of corporations and the effects of the concept of social democracy.
How long has the corporation existed?
Any discussion centered on how long the corporation has existed must provide an explanation of two factors. Those factors include a definition of a corporation and delineation between the historical origin of the corporation and the origin of the modern US Corporation. As stated in Investopeida, a corporation is “A legal entity that is separate and distinct from its owners. Corporations enjoy most of the rights and responsibilities that an individual possesses; that is, a corporation has the right to enter into contracts, loan and borrow money, sue and be sued, hire employees, own assets and pay taxes (Corporation, 2012).” The principle point of incorporation is that the entity would survive longer than the lives of any particular member, existing in perpetuity. The purported oldest commercial corporation in the world, the Stora Kopparberg mining community in Falun, Sweden, obtained a charter from King Magnus Eriksson in 1347 (Rechtsgeschiedenis Blog, 2012).
According to Michael Novak, in the US and the world, business corporations existed for centuries. In terms of exact years, In America during the 1700s the formation of first corporation takes place (Jennings, 2012).
What is the difference between the British and European Corporation and the U.S. Corporation?
There are fundamental differences between a corporation in the United States and one located in Europe. First, there is the rate at which the corporations grew within the two countries. In the US, corporations experienced a rapid growth in the 18th and 19th centuries. This is in sharp contrast to the pace of growth of in Britain and the Europe where the growth rate was much slower. Another difference is the issue of stakeholder protection. In US corporations, shareholders receive precedence in the actions of the corporation. This is especially true in the sharing profits or accrued benefits. In Britain and Europe, stakeholders do not receive priority treatment. This is a result of the provisions of corporate laws enacted in these countries. Another outstanding difference between the corporations of these two countries is the matter of...