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> If you work at a chocolate factory, and own the chocolate factory - your entire livelyhood is tied to that chocolate factory. If the company goes under, you l
by czep 10y ago
> If you work at a chocolate factory, and own the chocolate factory - your entire livelyhood is tied to that chocolate factory. If the company goes under, you lose your job and your savings.
Not true. Owners risk no personal stake because of incorporation. The company can go bankrupt and their personal wealth will not be touched. Just take a look at Hanjin. The firm can't pay it's employees but their kids are still driving around in MacLarens.
- Klockan 10y ago> Owners risk no personal stake because of incorporation. Owners per definition owns something, and if that something becomes worthless it means that the owner lost something. Thus owners always take personal risks, incorporation just means that they don't risk more than their ownership.