Corporate Form

    In the Dartmouth College case of 1819, Chief Justice John Marshall defined a corporation as “an artificial being, invisible, intangible, and existing only in contemplation of law.” A more specific definition of corporation is an association chartered by the government to do business and uphold the public interest.

Corporations are often made up of a large pool of investors and a small group of directors who orchestrate the actual legal and business dealings for the corporation.

    A corporation can issue stocks and bonds and buy and sell properties. It is not disrupted by the death or retirement of its members like other business forms. Another advantage is that the stockholders have liability that is limited by law, and aren’t fully responsible for the corporation’s actions.

    In the ideal situation, the corporation is a business form in which many people can take a small part in the industrial development of the country by contributing only money, while the management chosen to handle the actual business is made up of men of great ability that can properly guide the corporation to achieve success and uphold the public interest.

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