A company – properly called a joint stock company – is where a group of individuals put their money together to make a ‘joint stock’ of capital. The people who put up the money are called shareholders. They all own a share of the company, and expect to receive a share of its profits. The shareholders are also called ‘members’ because they are part of the company, but the company is a legal entity quite separate from the members who own it. In law, a company is regarded as an individual in its own right. It can make a profit or a loss; it can be held responsible for the actions of its employees; it can be sued; and, if the worst comes to the worst, it can go bankrupt (though in the case of companies this is called ‘going into liquidation’).
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