PUBLIC STOCK COMPANIES AND SHAREH OLDER CAPITALISM
The public stock company is an important institutional arrangement in modern , free market economies. It provides goods and services as Vell as employment , pays taxes, and increases the standard of living. There exists an implicit contract hased on trust between society and the public stock company. Society grants the right to incorporation, but in turn expects companies to be good citizens by adding value to society.
ExhibiL 12.3 depiclslhe levels of hierarchy within a public stock company. The slale (or society) grants a charter of incorporation to the company's shareholders-its owners, who legally mvn stock in the company. The shareholders appoint a hoard of directors to govern and oversee the firm's management. 111e managers in turn hire, supervise, and coordinate employees to manufacture products and provide services. The public stock company enjoys four characteristics that make it an attractive corporate form:
PUBLIC STOCK COMPANIES AND SHAREH OLDER CAPITALISMThe public stock company is an important institutional arrangement in modern , free market economies. It provides goods and services as Vell as employment , pays taxes, and increases the standard of living. There exists an implicit contract hased on trust between society and the public stock company. Society grants the right to incorporation, but in turn expects companies to be good citizens by adding value to society.ExhibiL 12.3 depiclslhe levels of hierarchy within a public stock company. The slale (or society) grants a charter of incorporation to the company's shareholders-its owners, who legally mvn stock in the company. The shareholders appoint a hoard of directors to govern and oversee the firm's management. 111e managers in turn hire, supervise, and coordinate employees to manufacture products and provide services. The public stock company enjoys four characteristics that make it an attractive corporate form:
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