BUSA 250 Chapter Notes - Chapter 1-6: Fair Labor Standards Act, Corporate Capitalism, Corporate Personhood
Document Summary
Businessmen an politicians suspicious of corporation from late 16th century. Unique design believed by many as corruption and scandal. Capacity to combine the capital and thus the economic power of unlimited people. Joint stock companies quickly became the fashion of the age. As the industry grew, so did the umber of corporations. By products assisting the development of a national market for company securities. Middle class people began for the first time to invest in corporate shares. A person risked financial ruin simply by owning shares in a company. Middle of 19th century, business leaders and politicians changed the law to limit the liability of shareholders in the amounts they had invested in a company. Limited liability necessary to attract middle class investors into the stock market. Ending class conflict by coopting workers into the capitalist system justification for limited liability.