The ideal of corporations, was it a good ideal or not? describe why?

Answer 1

The idea of corporations is to provide a liability shield for investors.

Corporations are artificial entities, and directly responsible for their own debts. Investors (stock-holders) and directors can thus conduct business without being personally liable (except in the case of fraud or breach of duty).

Without the corporate entity, every stockholder who goes into business would be personally liable for everything that happens in the market. The whole idea was to be able to allow corporations to conduct business, and the corporations even being able to declare bankruptcy if absolute necessary, without forcing personal bankruptcy on behalf of every investor.

They also allow investment without making the shareholders liable for the actions of every other shareholder. For example, in a business partnership, if one partner does something harmful (tort or crime) in relation to the business, then every other partner is automatically equally liable. So, if there were 100 general partners (financial contributors) to a business, every one of them would be vicariously liable for the acts of every other partner.

Corporations provide a means for businesses to try new things, without risking the personal homes and assets of everyone who wants to contribute. It also allows directors and officers to do their jobs, without having to worry that every single mistake could wipe them out. Corporate directors are still liable for fraud or willful breach of fiduciary duty, so the liability shield is not absolute. But it does protect them where they are making a good faith effort, based on available information, and acting in the best interests of the business.

Yes, some corporate directors do bad things. And some corporations abuse their power. Same as people do. But with tens of thousands of corporations (if not hundreds of thousands) in the US, how many are actually bad?

Without corporations, we would have a lot less innovation, and a lot less competition. Also, the entire capitalist market would be much less stable, since businesses would only exist as long as the individuals who started them (or their heirs) continued running things. Corporations can continue existing, long after their founders have died or retired, and thus help to maintain a sense of market stability.

Answer 2

with -out a strong labor organization to bargin for wages and benefits companies run ruff shood over workers .THEY take as much as they can and never give anything back they are not forced to.while investors make a profit of stocks often this money is not directly invested for new equipment or expanding the operations but simply as investment money speculators hired by company's invest to make even more money.
So the original idea of stock was to invest in the growth of companies and today with the billions in government money poured into companies it is hard to see that money is being used to make money and the workers are merely part of the equipment used by the company to produce a good or service not responcible for the over all growth of profits but awards from uncle sam .ALL in ALL companies with unions who paid good wages where busted by the owners who sold the company off or moved the jobs .AUTO workers are shrinking in power as toyota has ten plants with no union representation they pay less andover less . AND the big three are now talking reduction in pay and benefits .how come they spent the profits meant to go to workers and now complain about the cost of health care and benefits packages when for 50 years they have made profits that boggle the mind.THAT they choose to pay investers so much to drive up the price of stocks and payed executives outrages compensation packages is beyond me when the workers are the reason for the profits in the first place .
I always hate to get started talking about workers and how many have been cheated by the company's they work for .I have worked over the years in construction and in the begging felt bad for the boss who always cried poor mouth .I learned quickly that as i became self employeed too. I found the boss was never realy hurting and only did this to keep workers from asking for more .I do the same almost but pay a percentage rather then wage and it has only happened once but we got cheated and all of us ate the cost of our work and paid equally for the materials , several thousand dollars a piece but over the years we made good money .
So i have difficulty believing that companies who's workers must suffer for the business practices of some must suffer while manegment screws the workers and sucks up all the profits .