Limited Liability: Pros and Cons

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Questions and Answers

What concept refers to the ways in which oil and energy production shape the political, social, cultural, and economic life of a petroleum-exporting country?

Global Oil Dilemma
Petroculture (correct)
Petro-state
Settler Colonialism

Which of the following is NOT a defining characteristic of a petro-state?

Strong environmental regulations (correct)
Weak political institutions
Concentration of wealth in the hands of the few
Oil-rich country

Which of the following is a key issue addressed by scholars in the 'global oil dilemma'?

How to ensure a sustainable supply of fossil fuels.
How to transition towards a low-carbon energy supply. (correct)
How to maintain the current levels of oil production.
How to increase global oil reserves.

What is the primary focus of the text regarding "global corporate innovation systems"?

The ways corporations use innovation to create intangible assets. (D) Signup and view all the answers

What does the term 'intellectual rents' refer to in the context of the given passage?

Financial returns generated from intellectual property. (C) Signup and view all the answers

According to the provided content, what is a key characteristic of 'settler colonialism'?

Permanent acquisition of land and resources. (C) Signup and view all the answers

What is the primary goal of the global corporate innovation systems mentioned in the text?

To generate profits and increase shareholder value. (B) Signup and view all the answers

How does the concept of "limited liability" affect corporate behavior?

It allows corporations to take more financial risks. (D) Signup and view all the answers

What is the main argument of the critics of "limited liability"?

It encourages irresponsibility and inequality. (C) Signup and view all the answers

Which of the following is NOT a member of OPEC?

Mexico (D) Signup and view all the answers

What is the primary advantage of a joint-stock company, in terms of its structure, for investors?

It enables investors to raise substantial capital while limiting their personal risk. (B) Signup and view all the answers

According to the Canada Business Corporations Act (CBCA), what is a key characteristic of a corporation?

A corporation is a legal entity that possesses its own independent legal standing, enabling it to enter into contracts and own property. (D) Signup and view all the answers

What is the central idea behind the ‘separate patrimony’ concept as applied to corporations?

It protects the assets of the corporation from being seized by creditors of the shareholders. (D) Signup and view all the answers

What is the primary purpose of the ‘entity shielding’ principle in the context of corporations?

To safeguard the corporation's assets from being seized by creditors of the corporation's owners. (C) Signup and view all the answers

Which of these attributes contributes to the concept of the ‘legal personality’ of a corporation, as defined in the given text?

The capability to enter into contracts and own property in its own name. (A) Signup and view all the answers

What was the legal responsibility of shareholders in corporations in the past, as illustrated by the example of the Hudson’s Bay Company?

They were liable to cover the corporation’s debts with their personal assets. (B) Signup and view all the answers

What is the significance of the ‘legal personality’ concept for understanding the nature of a corporation?

It clarifies the legal distinction between the corporation as an entity and its owners. (A) Signup and view all the answers

Which of the following is NOT a fundamental feature of the ‘legal personality’ of a corporation, as explained in the given text?

The obligation to maximize shareholder profits regardless of other considerations. (D) Signup and view all the answers

What is the primary difference between a privately held corporation and a publicly traded corporation?

Privately held corporations have a more limited number of shareholders compared to publicly traded corporations. (D) Signup and view all the answers

What is the main purpose of 'Industrial Policy', as defined in the content?

To promote and protect domestic industries through government initiatives. (B) Signup and view all the answers

Which of the following was NOT a key component of Canada's National Policy introduced in 1879?

Establishment of a national bank to control the nation's currency. (A) Signup and view all the answers

According to the content, what is the significance of 'interlocking directorates' in the corporate world?

They create a network of interconnected corporations, solidifying alliances and influence. (A) Signup and view all the answers

What is the main argument for 'comparative advantage' in international trade?

Countries should specialize in producing goods they can make most efficiently, even if others can produce them cheaper. (C) Signup and view all the answers

Which of the following is NOT considered a characteristic of a national champion corporation?

They prioritize maximizing profits above all else. (D) Signup and view all the answers

What is the primary concern driving the development of antitrust legislation like the Sherman Act and the Anti-Combines Act?

To prevent the formation of large monopolies that could harm consumers and stifle innovation. (B) Signup and view all the answers

What is the primary reason investors are attracted to publicly traded corporations?

Investors are protected from personal liability for the company's debts by limited liability. (D) Signup and view all the answers

What is the main characteristic of an industrial policy as described in the text?

It involves government intervention and initiatives to promote specific industries. (E) Signup and view all the answers

According to the content, what is a corporate charter?

A formal document that establishes the company's legal existence and defines its rights and privileges. (A) Signup and view all the answers

What did the early years of enforcement for the Anti-Combines Act in Canada resemble?

An erratic and inconsistent approach to enforcing the law. (B) Signup and view all the answers

What is the primary goal of intellectual monopoly capitalism, as described in the content?

To exploit and leverage knowledge and data to drive profit and value extraction. (A) Signup and view all the answers

What does the term 'limited liability' imply in the context of publicly traded corporations?

Investors are only liable for the amount they have invested in the corporation, not their personal assets. (D) Signup and view all the answers

What is the fundamental rationale for comparative advantage in free trade?

Countries should specialize in producing goods they can produce at a lower opportunity cost than other nations. (B) Signup and view all the answers

Flashcards

Joint Stock Company

A business owned by shareholders who invest for shares, sharing profits and losses.

Corporation

A legal entity with rights, can sue or hold property, limits personal liability for debts.

Legal Personality

The concept that a corporation is seen as a person in law, owning assets and entering contracts.

Separate Patrimony

The distinction between corporate assets and personal assets of shareholders, protecting company assets.