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mdagenh1 mdagenh1
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4 years ago
Why is it possible for a corporation to enter into contracts, acquire assets, incur obligations, and enjoy protection against the seizure of its property?

▸ The number of owners, and hence the spread of risk among these owners, is not limited.

▸ The state in which the corporation is incorporated provides safeguards against any wrongdoing by the corporation.

▸ It is a legally defined, artificial entity that is separate from its owners.

▸ Its owners are liable for any obligations it enters into.
Textbook 
Fundamentals of Corporate Finance

Fundamentals of Corporate Finance


Edition: 2nd
Authors:
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jzhu11jzhu11
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4 years ago
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