Sociology and economics section 2 review A Brief History of Capitalism With wage labor came monetization , the formation of the corporation , and limited liability ownership Monetization – the establishment of a legal currency (in the context of large cities and wage labor, the need for a monetary system emerged – to replace the barter system) Corporation – a legal entity unto itself that has a legal personhood distinct from that of its members (its owners and shareholders) In the US, corporations are legally recognized persons and share many of the rights of an individual (can enter into contracts, can own property, can sue and be sued, etc.) Limited Liability – a form of ownership that creates a division between the individual (the shareholder or executive) and the business entity – it’s a legal way to protect investors from personal responsibility for any liabilities beyond the value of the company
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- Fall '13
- Sociology, wage labor, Corporation