agency relationship
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situation where principal hires agent to act in their best interests. in case of
corp, stock holders are principals, and managers are their agents
unlimited liability
, Give this one a try later!
creditors can look beyond business assets to proprietor's personal assets
for payment
dividends
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when corp disgorges its profits to stockholders
asymmetric information
Give this one a try later!
transaction or trade where buyer and seller have different info sets. when
one party has superior info and other inferior, it can be difficult and costly
to arrive at mutually agreeable terms
limited liability
Give this one a try later!
when maximum loss owner can realize is their investment in business
shares of stock
Give this one a try later!
situation where principal hires agent to act in their best interests. in case of
corp, stock holders are principals, and managers are their agents
unlimited liability
, Give this one a try later!
creditors can look beyond business assets to proprietor's personal assets
for payment
dividends
Give this one a try later!
when corp disgorges its profits to stockholders
asymmetric information
Give this one a try later!
transaction or trade where buyer and seller have different info sets. when
one party has superior info and other inferior, it can be difficult and costly
to arrive at mutually agreeable terms
limited liability
Give this one a try later!
when maximum loss owner can realize is their investment in business
shares of stock
