Chapter 4

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• Separate legal identity has several important consequences:
• Liability of the owners is limited to their investment in their
company
• Rights and benefits accruing to the company belong to the
company, not to its owners

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• Main exception to the rule that international guidelines for
ethical behavior should be voluntary is the OECD-sponsored
Convention on Combating Bribery of Foreign Public Officials
• The convention requires states parties to outlaw the “active
bribery” of foreign officials
• The U.S. Foreign Corrupt Practices Act is typical of the
legislation currently being enacted in other countries to
implement the convention

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