Thursday 1 December 2011

What is a corporation, what is it's purpose?

What is a corporation?

 A legal entity that is separate and distinct from its owners.

Corporations enjoy most of the rights and responsibilities that an individual possesses.
That is, a corporation has the right to enter into contracts, loan and borrow money, sue and be sued, hire employees, own assets and pay taxes.

The most important aspect of a corporation is limited liability.
That is, shareholders  have the right to participate in the profits, through dividends and/or the appreciation of stock, but are not held personally liable for the company's debts.

They have privileges and liabilities that are distinct from those of its members.

What is "Limited Liability"?

Shareholders & Employee's may lose there investments and jobs, but neither will be liable for debts to the corporation's creditors. (Creditors are the people who lend money)

What is the benefit of a Corporation?

Shareholders have the right to participate in the profits, through dividends and/or management or employees
(A bonus if the company performs well financially. Such a method is called a 'plan'.), but neither the shareholders or the employee's are held personally liable for the company's debt.

What is the purpose of a Corporation?

The Formula:
Corporation > Capital > Profit & Loss > Corporate responsibility will act in the interest of it's shareholders, instead of public's = Shareholders & Company employee's do not face the consequences of there actions.

SO, corporations are given the right (Despite not being human) to, enter into contracts, loan and borrow money, sue and be sued, hire employees, own assets and pay taxes.

And because of it's "Limited Liability", the shareholders and employee's are not held personally responsible for the company's actions. So the real purpose of a corporation is so that the people running it don't get held accountable for there actions.

After all, a corporation isn't human, and it can't go to jail.


The ""Limited Liability" of a corporation, insures that neither the Shareholders or Company employee's face the consequences of there actions.

But what is the difference between a Corporation and a Business?

Business: A business is an organization engaged in the trade of goods and services (or both) to customers.
Corporation: A corporation (or company) has "Limited Liability".


What is the best way to dissolve/ destroy a corporation?

A corporation is not human. Therefore it will only exist if people work for it.

What is a corporatocracy?

The concept of corporatocracy is that corporations, to a significant extent, have massive power over governments including those governments nominally elected by the people. They exercise their power via corporate monopolies and mergers, and through their subsequent capacity to leverage broad economic interests, which allows them the luxury of being declared "too big to fail"; this is accomplished by legal mechanisms
 (i.e., lobbyists, campaign contributions to office holders and candidates, threats to leave the state or country for another with less oversight and/or more personally beneficial subsidies, etc), which renders them immune to vague accusations and prosecution.

It may also refer to an unrealized form of government or theoretical corporate governance in national or international affairs.

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