Question

In: Economics

How do corporations differ from other capitalist firms? What is the role of the government in...

How do corporations differ from other capitalist firms? What is the role of the government in the creation of corporations?

Solutions

Expert Solution

Selling stock in a corporation is a great way to raise capital and the transferability of ownership is one of the main differences between corporations and companies. ... Because corporations are an independent legal entity, owners are not personally liable for debts and liabilities incurred by the corporation.

Governments issue regulations related to environmental practices, employee practices, advertising practices, and much more. Furthermore, government regulations affect how companies structure their businesses, where companies decide to locate, how they classify their employees, and thousands of other things.


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