Corporate Finance
3rd Edition
ISBN: 9780132992473
Author: Jonathan Berk, Peter DeMarzo
Publisher: Prentice Hall
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Chapter 1, Problem 9P
Summary Introduction
To determine: The reasons of public policy of patent protection helps to align corporation’s interest.
Introduction:
A corporation is an organization or a business framed by a gathering of individuals, and it has rights and liabilities isolated from those of the people included. It might be a philanthropic or a non-profit association occupied with activities for the public, private, municipal and city or town, which has been sorted out to make a benefit.
A limited liability ensures that a proprietor cannot lose more cash than he put resources into an investment. At the end of the day, it alludes to the measure of risk a financial specialist takes when he invests resources into an organization. Contingent upon the way an organization is sorted out, the proprietors can really lose more than their investment if the organization is bankrupted.
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