Companies Law Study
Law schools typically offer either a single upper level course on business organizations, or offer several courses covering different aspects of this area of law. The area of study examines issues such as how each major form of business entity may be formed, operated, and dissolved; the degree to which limited liability protects investors; the extent to which a business can be held liable for the acts of an agent of the business; the relative advantages and disadvantages of different types of business organizations, and the structures established by governments to monitor the buying and selling of ownership interests in large corporations.
The basic theory behind all business organizations is that, by combining certain functions within a single entity, a business (usually called a firm by economists) can operate more efficiently, and thereby realize a greater profit. Governments seek to facilitate investment in profitable operations by creating rules that protect investors in a business from being held personally liable for debts incurred by that business, either through mismanagement, or because of wrongful acts committed by the business.
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Famous quotes containing the words companies, law and/or study:
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—Sugar Rautbord, U.S. socialite fund-raiser and self-described “trash” novelist. As quoted in The Great Divide, book 2, section 7, by Studs Terkel (1988)
“I was not born to be forced. I will breathe after my own fashion. Let us see who is the strongest. What force has a multitude? They can only force me who obey a higher law than I.... I do not hear of men being forced to live this way or that by masses of men. What sort of life were that to live?”
—Henry David Thoreau (1817–1862)
“The life of a good man will hardly improve us more than the life of a freebooter, for the inevitable laws appear as plainly in the infringement as in the observance, and our lives are sustained by a nearly equal expense of virtue of some kind. The decaying tree, while yet it lives, demands sun, wind, and rain no less than the green one. It secretes sap and performs the functions of health. If we choose, we may study the alburnum only. The gnarled stump has as tender a bud as the sapling.”
—Henry David Thoreau (1817–1862)