1. Short notes on
a) Salomon vs Salomon
b) Limited liability
c) Joint Stock Co.s
_____________________________________________________________________ Private companies are auctioned off at the beginning of the game and are owned outright by the winner of these auctions. Private companies provide income for the owner. This will be individual players at the start of the game, but might be public corporations later if they have acquired private companies through the course of the game by purchasing them from individual owners. Private companies do not run trains, and do not have routes, but often have special properties like access to specific stocks in public corporations or privilege to lay track in specific areas of the board. Private companies can close down when certain game conditions are met.
Public corporations start when more than half the stock for the company is in the hands of players. The company is then run by the President, who is the player that has at least 20% stock in the company and more than anyone else. That player makes all decisions related to the management of the company, which includes purchasing trains, laying track networks, and paying out or re-investing dividends. Presidency of a public corporation can be transferred between players based on stock holdings. If a public corporation can't pay its obligations, the President of the company must liquidate what they can to make up the shortfall. The bankruptcy of a public corporation is one of the ways the game can end. -----------------
Privately-held companies are - no surprise here - privately held. This means that, in most cases, the company is owned by the company's founders, management or a group of private investors. A public company, on the other hand, is a company that has sold a portion of itself to the public via an initial public offering of some of its stock, meaning...