How well does the corporate structure work?

Perhaps history provides the best answer to this question. If the corporate structure were not an effective form of business organization, it would not have continued to survive, nor would it be so prevalent today. Rival forms of business organization, including proprietorships, partnerships, consumer cooperatives, employee ownership, and mutually owned companies can and do compete in the marketplace for investment funds and customers. In certain industries, some of these alternative forms of business organization are dominant. Nonetheless, in most industries, the corporate structure is the dominant form of business organization.This is strong evidence that, despite its defects, the corporation is generally a cost-efficient, consumer-sensitive form of organization.

Tags: banking, business, Corporation, industry