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Team Reflection

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Discuss with your Learning Team the following questions as related to the Week One objectives:
 What are the benefits to commerce of having shareholders—and other entities that shield their members—protected from personal liability?
The main benefit to commerce to having shareholders is forcing top executives and other members of management to be accountable for their actions. When the shareholders have a vested interest in the company operations a duty exist on both sides to insure the company is performing well not only economically but also socially.
A corporation exists to shield shareholders from the personal liability for the actions of a corporation. An example would be the shareholders of BP. Despite the fact there were billions of dollars in damages related to the Gulf oil spill of 2010, the shareholders were not held personally responsible for the damages although the BP Corporation was, both socially and economically.
Shareholders decide to invest in a company which they feel will turn a profit for their portfolio or they decide to invest in a company that will serve the community, promote job growth, or be a responsible steward for their investment. A benefit is created commercially for not only the shareholder but the industry the corporation participates in by creating competition and other economic benefits.
 Would commerce be better served if personal liability would attach to those individuals for the misdeeds of their entity? Why or why not? Commerce would not be better off if personal liability were attached to those individuals for the misdeeds of their entity. The corruption at Enron and HealthSouth, which is well beyond belief but true, demonstrates holding those responsible did little or nothing to make whole those that were affected. Shareholders lost millions of dollars as well as the employees. Enron

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