> far north of Norway (Troms & Finnmark). Not quite as cold as Canada, maybe, but close.
Not even close! The Gulf Stream keeps them nice and toasty. Tromsø or Hammerfest, for example, sees wintertime overnight lows similar to e.g. Worcester, Massachusetts (28 degrees of latitude further south). A far cry from places like North Dakota where the daytime highs in December and January are colder than the overnight lows in Tromsø, let alone places in inland Canada.
This is legal fiction that has no bearing in the kinds of subjects that it often gets brought up in. Simply put, those responsible for a company (e.g. officers of a corporation) have a fiduciary duty towards its owners (e.g. the shareholders), and it means that the owners would have legal recourse against the officers if they were provably pissing money away on things that don't benefit the company at all.
That latter part is a high bar and critically does not mean that they are, for example, legally required to prioritize quarterly profits over the long-term success of the company or to pay employees as little as possible, as is often mentioned. It just means that officers must take action that furthers the interests of the company in the way that they prudently and reasonably see fit.