What makes a company American?

Question

I am a student in an International economics class and we are all having trouble with this one.

Answer 1

A company is American when it files a correct charter with the USA government.

"Historically, corporations were created by special charter of governments. Today, corporations are usually registered with the state, province, or federal government and become regulated by the laws enacted by that government. Registration is the main prerequisite to the corporation's assumption of limited liability. As part of this registration, it must in many cases be required to designate the principal address of the corporation as well as a registered agent (a person or company that is designated to receive legal service of process). As part of the registration, it may also be required to designate an agent or other legal representative of the corporation depending on the filing jurisdiction.

Generally, a corporation files articles of incorporation with the government, laying out the general nature of the corporation, the amount of stock it is authorized to issue, and the names and addresses of directors. Once the articles are approved, the corporation's directors meet to create bylaws that govern the internal functions of the corporation, such as meeting procedures and officer positions.

The law of the jurisdiction in which a corporation operates will regulate most of its internal activities, as well as its finances. If a corporation operates outside its home state, it is often required to register with other governments as a foreign corporation, and is almost always subject to laws of its host state pertaining to employment, crimes, contracts, civil actions, and the like."

Answer 2

Uh, I'm surprised and a little disturbed if a whole classroom of college students can't figure this one out, not much of a mystery. If the company has its headquarters in the United States, it is American. If it has its headquarters in any other country, it's not American.

If in doubt as to headquarters location, look the company up on www.hoovers.com and see what address is given.

Peripheral trivia such as location of most shareholders or the CEO's nationality have nothing to do with it.

The only caveat is that a company may only be the American-based majority-owned subsidiary of another foreign-based company. In which case, the company is still technically American but I'd say the nationality of the parent company is what matters. eg, Panasonic of North America is for all practical purposes thought of as a Japanese Company

Answer 3

In my opinion, the nationality of the majority of shareholders (real persons).

After all, Legal Persons (e.g. Corporations) are LEGAL FICTIONS. The ultimate beneficiary of an investment is the shareholder, a REAL person.

Answer 4

These days with the world market and all. Dang it, I will be pondering this the rest of the day.

Answer 5

the majority of shareholders

the interlocking directorate

the ceo

location of head office