1. The Diverse of Organization: The Corporation By: Angel Freedman

2. The Corporation O The publicly held corporation had 2 important advantages: O investors are enable to spread the commercial risk of investment by buying small, and quickly marketable, shares in a number of enterprises. O increasingly large enterprises were force to imitate the organization structure of armies, governments, and churches.

3. History O In the late sixteenth century, the early corporations chartered to engage in economic activity also had political powers, and exclusive right to engage in the activity that they were chartered. O By the eighteenth century, some voluntary group of investors were attempting to operate joint stock companies as purely economic entities without benefit of a royal charter and without any political powers or exclusive rights to any trade. O They differed from partnership in that their shares were freely transferable.

4. Franchised Corporations O The early decades of the 19 th century, another form of corporation was engaged in building turnpike, bridges, canals, and railroads. This corporation was extremely popular in the united states. Later these corporations also operate public entities like supplying gas, water, electricity and street railway transportation, and toward the end of 19 th century, they started a telephone service.

5. Joint- Stock O A form of business association developed by English merchants from 17 th century. It presented by stock certificates, were freely transferable. Differ from the corporation in that it lacked loyal charter, and differ from partnership in that financial interests in the enterprise.

6. Joint-Stock O Joint stock companies were form without benefit of royal charter like franchised corporation

7. Joint-Stock O Subjected to 3 major infirmities: 1. Joint-Stock were by default partnerships, because they lack charters 2. Related that the courts did not recognize them as legal entities; so that they could enforce rights in property and contracts. 3. The third infirmity was inherited from Roman Law and enhanced by the interest of the crown and parliament in the revenues to be derived from granting corporate charters.

8. Non-Profit Groups O The term nonprofit means only that profits are added to the assets of the corporation. O Non-profit groups are usually incorporated: churches, unions, hospitals, schools, and charitable agencies. O All have a limited liability, the right to own property, and the right to sue and to be sued.

9. Cooperative Corporations O Are similar to conventional business corporations. O Intended to operate for the financial benefit of a specified class of members.

10. Conclusion O By the closing decades of 19 th century, the use of the corporate mode of organization in the West had been extended the types of economic activity for which was necessary. O The concept of manufacturing and trading enterprises, group-owned and conducting their business affairs through agents elected by the owners, had achieved general acceptance.

11. Work Cited O L. E. Birdzell, Jr. How The West Grew Rich: The Economic Transformation of The Industrial World