4.1 The Corporate Finance of Coöperation

Under the current regime of capital investment, a commercial enterprise is started either by an individual, who buys their tools and materials and starts making and selling goods or services; or by a partnership of individuals, who essentially do the same thing. They can incorporate and form a corporation or limited liability partnership, all of which are ways to protect them from personal liability for the obligations of the company. They use the corporate form as a shield from personal liability, as a way to keep their finances separate, to gain tax advantages, to get credit from a bank, and so on.