“Scholars and practitioners generally agree that any large enterprise must be run through a legal entity such as a corporation. While a minority view questions whether business entities are really necessary, the leading academic voices argue that the use of a legal entity confers benefits that would be ‘effectively impossible’ to obtain through other means. For example, entities reduce transaction costs to coordinate an enterprise’s many patrons, limit liability for shareholders, and protect a business from untimely dissolution. The widespread consensus is therefore that legal entities are essential to economic life as we know it …” (more)
[Andrew Verstein, Oxford Business Law Blog, 20 September]
First posted 2016-09-21 05:48:27
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