Reference no: EM133052661

Team members should discuss the long list of deregulations that Corporations have achieved over the years, starting with corporate lawyers arguing that the 14th Amendment should apply to Corporations, giving them the rights of personhood. Continue by discussing all the other restrictions that were placed on early corporations that have been removed leading up to the current practice of CEO stock options. In considering the "bad corporate actions and impacts" list you composed in the previous discussion, how do all these various deregulations contribute to these negative impacts? Did early deregulation pave the way and CEO stock options merely constitute a dangerous tipping point? Would CEO stock options be as destructive if shareholders were fully liable, as they were at the beginning?

"BAD CORPORATE ACTIONS AND IMPACTS"

-Tax Liability

-The profits of a typical company are taxed twice, meaning the firm gets taxed twice on its earnings. Shareholders who received earnings in the form of dividends or capital gains are likewise subject to taxation. This is often only encountered in huge corporations. Small firms can avoid this by electing to be classified as a "S" corporation.

-Time and Cost

-Document preparation and fees paid to your state's Secretary of State Office cost time and money.

-Heavy Regulation

-Federal, state, and local entities impose heavy regulations on corporations. This can cost a lot of money and prevent profits and growth.