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combs | Questions about the rich and their coporations? |
the rich own coporations,they control everything but own nothing,if you sue them,you sue the coporation,how do the rich benefit from these coporations?can you give me a typical meaning and examnple to understand this saying? |
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Julia
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When you are talking about a public corporation (think Microsoft) it is not nessessarily the "rich" that own the corporation. Many people invest in the company (buy stock) and in exchange they recieve a partial ownership of the company. So it is not Bill Gates who dictates everything Microsoft will do, but a community of owners and shareholders, the board of directors etc. A business becomes a corporation for many reasons, one of which is to be publicly traded as a way of acquiring funding, as well as to continue as a business after the lifes of its founders and owners have ended. Thus the corporation must become its own entity; you sue Microsoft, not Bill Gates. Besides, most owners do not have as much money as the public percieves them to have. Many put much of their earnings back into their companies, and may have a good portion of their net worth tied up in non liquid ivestments (like bonds or houses that are not "cash"). And you must take into consideration the other owners, the shareholders. Most of them live in what we consider the middle class, and wouldn't even have the money to pay if they were sued. |
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angellove21
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Essentially, all of their wealth is in the company, if you sue them, your not suing their money, but the person who built the company. In many cases, large corporations are actually run by a board of trustees. They manage the money, and decide how much the big cheese gets every year to support him/her and their family. They often are also the chair of the board. |
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capnemo
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You should clarify your question. First you say the rich own corporations, then you say they own nothing.
I think what you are asking is how the rich own these companies but you cannot sue them personally? Not everyone that owns a corp. is rich. One reason for incorporating a company is to protect the assets of the person that owns the company. If a company puts out a product that hurts someone, for example, the company gets sued, not the person. He has to be protected from that in some way and that's how it's done. There are other benefits of incorporating, but I think this is what you asked... |
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chriszchris
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if it is a public corporations, the stockholders own it!!! Stockholders are you and me and everyone you see...whenever anyone has a mutual fund (almost all do), these are invested in these evil corporations!!
Don't worry about the rich, worry about how you can ahead in life!!! |
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Ken C
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Sorry, but the rich are the one's who own 99% of the Corporations in America. Hearing to much on TV about these myths. If your referring to the huge Corporations on the DOw Jones or S&P 500 they are owned by shareholders like you and me.
By far the vast majority of corporations are owned by small business Sud-Chapter-S corporations, like myself. I am hardly rich.
It is true, assets such as my home, and retirement plan are protected, if my business dosn't make it. But if I am not making money and creating jobs for others, then I don't have income so there are no tax savings. Further, if I were to do something unethical or harmful in my sales practices, or products, my business will close and oh YES I CAN BE SUED AS AN INDIVIDUAL AS AN OFFICER OF THE COMPANY!!!.
For tax purposes I get to deduct my cost of doing business like health insurance, which I PAY 100% for, materials, supplies, employees salaries and so forth. I put my money at risk every day.
You know what I produce? Products for disabled pets. Hardly the rich guy or what your idea of a corporation was huh?
And no, we honest folks don't get to deduct all the crap you hear about. 99% are just regular folks like you and me. |
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