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Technically, a corporation exists to distribute risk to facilitate a venture that may produce a return, not necessarily fiscal, but nevertheless valuable to the
by salawat 4y ago
Technically, a corporation exists to distribute risk to facilitate a venture that may produce a return, not necessarily fiscal, but nevertheless valuable to the group undertaking it.
It's a perversion of the concept to jump to must produce a positive financial return. Sometimes you just need an organization to coordinate something that eases a societal ill.
That business schools have forgotten this, and that we don't remind people of this consistently is a tragedy. It cuts off entire avenues of collective organization to get things done. Some times "getting it done at minimum outlay" is enough.
- sgjohnson 4y ago> It's a perversion of the concept to jump to must produce a positive financial return. At no point I suggested that. I said "shareholder value, as defined by the shareholders themselves". "value" doesn't imply fiscal.