Corporation, Origins and Nature

A corporation, often considered a legal fiction, is an entity that exists for the purpose of allowing individuals to organize efforts in order to create value with some sort of profit in mind. Corporations are not required to maximize profits, but they are required to aspire to profit.

The corporate form dominates the global marketplace. According to a 2015 study by antipoverty charity Global Justice Now, the 10 largest corporations make more money than most countries in the world combined. Of the top 100 economic entities in the world today, 69 are corporations. This figure represents a significant increase—almost 10%—from the prior year. Of the top 200 economic entities, 153 are corporations. Companies such as Walmart, Apple, and Shell have more wealth than Russia, Belgium, and ...