The History of the Corporation

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This historical process has produced five functions that characterize the modern corporation. Corporations have emerged as...

1. "Passive devices" that hold property
2. Structures designed to exert monopoly control over and regulate a domain of specialized knowledge and skill
3. Means designed to pool capital and resources including human resources
4. A legal shield that protects owners and investors from liability and helps to spread and distribute financial, moral, and legal risk
5. Organizational decision-making structures that subordinate and synthesize the actions of human agents to bring about collective goals such as building a railroad, designing and manufacturing automobiles, and pursuing legitimate business ventures.