Corporations

This course is an introduction to the basic legal rules and principles governing the relations among managers, investors, and (to a lesser extent) creditors in the business enterprise. The course is the foundation for advanced business courses. We focus on problems that arise because a firm's managers and owners have conflicting interests. We examine the costs associated with this conflict and how markets, legal rules, and contracts address them. Elements used in grading: Class participation, attendance, written assignments, midterm, final exam.