The Olympus corporate scandal of 2011 Research Paper

The Olympus corporate scandal of 2011 - Research Paper Example From the research it can be comprehended that a corporate body has a distinct legal status and has characteristics and liabilities that are separate from those of its members. It has the right to exist for indefinite period of time. New corporations are created after having them registered and their main purpose is to conduct business and commerce. A corporate body can be owned by two or more individuals who form a partnership with an agreement among themselves to share profits and losses in a pre-determined ratio. A partner can have limited or unlimited liability. A limited liability partner is one whose responsibility for company’s debts is limited only to the amount of his capital contribution. Unlimited liability means when a company is declared bankrupt, then the partner’s personal assets can be seized to clear the debts. All corporate bodies have some common purposes. A corporation garners the interests and funds of its owners to serve the interests of the public. It shall ensure fair profits for its partners but not by endangering the stake of other shareholders. Every corporate body needs to satisfy the needs of the current generation and at the same time must have an insight into the needs of future generations. A corporate body must perform its activities in a legal and ethical manner. The success of a corporate body depends mostly upon the performance of its management personnel. The management should apply proper strategy and innovations in their performance to bring in more profits on a sustained basis for the organisation by improving the performance of the employees and also by encouraging efficient contribution by those who contribute. Performance management works in combination with corporate management in service