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7 Cards in this Set

  • Front
  • Back
A corporation is a monster trying to devour as much profit as possible at anyone’s expense.
One form of business ownership - It’s a group of individuals working together to serve a variety of objectives. The principle one of which is earning large, growing, sustained, legal returns for the people who own the business.
The first chapter asks interviewees to search for metaphors to describe what a corporation is and does. Which metaphor do you find most apt?
Corporations were originally associations of people who were chartered by a state to perform some particular function, like a group of people want to build a bridge or river. There were very few charted corporations in U.S. History and the ones that existed had clear stipulations in there state issued charters. How long they could operate? The amount of capitalization? What they made or did or maintained was in there charter and they didn’t do anything else. They didn’t want or couldn’t own another corporation. There shareholders were liable.

In both law and the culture the corporation was considered a subordinate entity that was gift from the people in order to serve the public good.
The second chapter analyzes the “birth of the corporation as something recognized and protected by U.S. law. How and why did the nature of the corporate form, and its stated legal purpose, change over time?
It can buy and sell property. It can borrow money. It can sue in court and be sued. It carry’s on a business. It is a member of our society
If a Corporation is a “legal person,” then kind of person is it?
Microsoft – Aggressive
Nike – Young and energetic
McDonald’s – Young, outgoing, enthusiastic
Monsanto – Immaculately dressed
What kind of personality does it have?
No. These are special kinds of persons which are designed by law to be concerned only for there stockholders
Does it have a moral conscience
An ______ is the effect of a transaction between two individuals on a third party who has not consented to or played any role in the carrying out of that transaction.

Unintended costs or benefits that are imposed on unsuspecting people and that result from economic activity initiated by others.
The fourth chapter addresses the so-called
“externalities” produced by corporations. What is an externality
"the greater the socialization of the costs of variable capital, the lower will be the level of money wages, and... the higher the rate of profit in the monopoly sector." And since the monopoly capital sector is able to pass its taxes onto the consumer or to the competitive capital sector, the effect is that "the costs of training technical laborpower are met by taxes paid by competitive sector capital and labor
What does the phrase, “socialization of costs” mean? They satisfy assumption