Untrue Things People Believe
This is the fourteenth article addressing those things most people believe that are not true introduced in the article, "Most Of What You Believe Is Not True." To see all the articles, or any other one, please see the Index.
Corporations are another kind of organization. Unlike other organizations, corporations are not formed by their members, or any people at all. Corporations actually exist to hide or at least protect any real people associated with them.
Corporations have two unique characteristics: 1. they can only exist by the authority of some government, and 2. there is no real entity or any real people who are a corporation; corporations are, in fact, fictions.
Only governments can make things exist simply by saying they exist, perhaps requiring a certain amount of ritual and paperwork. The things they make exist cannot be seen (or perceived with any of the other senses) or be discovered in any other way. To know they exist one must be told they exist (or hear or read that they exist).
That is exactly what corporations are, the magic creations of government. If some businessmen, for example, would prefer to do business in a way that would be less risky for them, or require financing they do not want to be responsible for, they can apply to have a corporation formed by a government, usually a state government. Even though there is no real such entity, the imaginary entity called the corporation can act just like a human being, to borrow money or sell stock to raise funds, make policy and business decisions, and sign contracts; then, if anything goes wrong, it is the non-existent corporation that bears the consequences. Of course actual business decisions and actions are performed by real human beings such as corporate managers and executives, on "behalf of" the nonexistent corporation, which relieves them of responsibility for the actual human action, while any money that is made goes to the real people, any losses go to the nonexistent corporation. Corporations are a great racket.
If you wonder why there is so much corporation corruption in the news, remember the corporate scheme is one huge fake. What else would you expect?
Corporations are not the only things a government can magically produce. All of so-called, "intellectual property," can only exist by government decree, for example. I'll save that for another discussion.