Today, without corporations, we would not exist at all. It is easy to say why. Simply because we already demand perfect materials, products, and services. And none of us can do everything to a high enough standard. So people have to specialize. And those who specialize in this or that will congregate in a particular place, do what they do best, and make a living at it. In such places, they get the necessary materials and important equipment, divide up the work, and set up companies. [Such a business may operate as a
-corporation
-or as a natural person
. The legal entity is registered in the commercial register in its name, while the natural person is registered in the name of the owner, often designating the form of the entity, e.g., limited liability company, joint stock company, etc.
In the traditional sense, such an entity is engaged in converting resources into goods, and thus purchases the services of the factors of production, converts them into goods and resells them. In this way, they make a profit. By doing so, they try to make as much money as possible. Logically
such firms in the traditional sense strive to make as much profit as possible. They then try to survive in the market for as long as possible, gain a certain market share in that market, grow and expand. And also to grow its market value so that it can eventually be sold at a profit.
This is the theory. In practice, however, it is often quite different. We know from our own experience. [how many companies were founded by white horses? And they were not going to stay in the market, they were going to collect their illicitly extracted profits immediately and disappear.
– How many companies exist that have no intention of making money, but only to launder dirty money?
– How many companies do not even produce a product, but just live off subsidies!
– Conversely, how many companies wanted to create a fair market, but failed! Because of competitors, bureaucratic shenanigans, etc.
That is why we have and will continue to have corporations around us. And hopefully, honest and useful companies will prevail
over those that do nothing but ruin their reputations.