fit your mental picture of a corporation it's big business but the corporations have to be big business take a run occurs and co operated  drugstore corporations are always big and not all cropper ations are businesses consider for example fairview incorporated town is not a business is it what about schools and colleges lay are often cooperations as are many churches hospitals and other nonprofit organizations but business makes up the great majority of cooperation for others small or large incorporation is one way of organizing a business it is one form of business ownership imperial steel incorporated as many of the legal rights of a person it owns the land and buildings and equipment it can buy and sell property it can borrow money it can sue in court and be sued it carries on a business imperial studio along with thousands of other legal persons is a part of our daily living it is a member of our society yet it is not simply this property nor is it a human being or a group of human being it is imperial steel company incorporated with stock owned by people in widely scattered places you haven't got anything more to put into this business just because i have this going to little property i have to come to the rescue or will be sued just as i told you in this partnership each partner is personally liable for any debt or single proprietor i ran the store the way i wanted to i could do as i pleased and i collected all the profits that's the way to run a business on your own receive stacking goods on the shelves you had paper trouble sales slips their invoices man did you need help and support you got sick where would you one man business be not only did you need the kind of help you can hire you needed additional capital to carry a larger variety of goods and i needed partners you sa now i'm on the spot because of partners warrant i still say our partnership was best for your kind of operation at that time you'll remember it was fairly simple once we found the right people dependable man who had cash to invest and could do cards for a share the profits and then there was johnson he could also invest a little money and his experience as a clothing buyer for another company made him a valuable partner too we knew they'd work hard for the business because each had a personal interest in making it go as well as the ability to do the work that had to be done so you were partners in the fairview clothing store and with their cash in their help you were able to expand a little take on some additional lines a good yes i think your partnership has done quite well i suppose at least we did well until johnson made the  expensive modern fixtures a new store front and signed commitments for more than our ready cash we were just talking to more than we can handle right now we'd like to modernize the store like that but where is the money coming from the store but i don't want this to happen again what can i do and i got rid of my partners almost all myself again you can afford to buy them out now you know and i don't know that i want to have the store needs all three of us everybody makes a mistake once in a while but i just kept a personal example for another one that's one of the weaknesses of a partnership isn't it so well maybe a better incorporate the start incorporating yes if you stop to each partner in proportion to the amount of his investment in the store with more than half the stock you  controlling interest but in control of the corporation which owns the store you share your property with the others in proportion to their stock ownership was it a minute if you start controlling interest that sounds like a lot of paperwork red tape oh it does get a little complicated and you may as well know there are other disadvantages you'd be paying special taxes you'd be subject to new regulations but incorporating would give you the big advantage in what you want right now limited liability look here's how it works you start with a group of people who want to invest their money in a company then these people apply for a charter as a corporation the state government issued a charter to that corporation now that corporation operates legally as an individual person it is not a group of people it is under the law a legal entity or the same as one person engaged in business and that person is responsible for the debts and in this case and largest stockholder you can select the board of directors yourself and your partners who will vote to make you president of the corporation will uncomplicated but if you say it's necessary and it will let me make operation want to do i am in favor of it and it will mean that none of the stockholders can be held liable for any more than his original investments sure that's what we mean by limited liability well and i think it's a good idea i do too as a matter of fact i was thinking i'd like to put some money into fairview clothing store incorporated it looks like a good investment to me maybe i can hang on to my start going to various stale incorporated years mr brown will remain one of the money owners of imperial steel company incorporated because the stock of this company is offered on a stock exchange to the general public it is known as an open corporation like many large open corporations imperials still is not controlled by any one person stock shares are bought and sold as large and small investments of many people the management of the company is handled for the stockholders by the elected board of directors the spike the pulling of capital the limited risk to the individual owners corporations can make replan tribulation