3 ms·
In the U.S. corporations exist for the purpose of providing limited liability with respect to common investments in a business activity. (The original British c
by gamblor956 4y ago
In the U.S. corporations exist for the purpose of providing limited liability with respect to common investments in a business activity. (The original British concept of corporations did not provide for limited liability for shareholders, see e.g. Lloyd's of London.)
It was only in the past few decades that a political ideology decided that corporations were about maximizing shareholder investments to the detriment of everything else.
- NotYourLawyer 4y agoNo, limited liability is not an end in itself. Ask yourself what we’re trying to encourage by granting investors limited liability.
- gamblor956 3y agoLimited liability with respect to investment in a business activity is the sole original reason for the corporate form, as you don't need a corporation to pursue a mutual business activity (that's what Partnerships are for).