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
- rineherdt
- Sociology, wage labor, Corporation
