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Q. What is Corporation?
A corporation is a form of business established as an independent legal entity, separate from individuals who own it. A main benefit, for owners, of this form of business is that it provides for limited liability for its owners: potential losses resulting from their ownership of company (must it lose money, face legal difficulties or experience other problems) are limited to amount initially invested by the owners. Owners' other personal wealth is kept protected and separate from claims against the corporation. Corporation is hence well-suited to the joint stock form of ownership.
a) Explain the perverse incentive. b) What makes the incentive perverse? c) How could the incentive makers better the incentive?
politicians are often heard saying that tuition at state universities should be kept low to make equation equally accessible to all residents of the state, regardless of income
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