Re:Buffett Will Steer Investors to Airbnb to Avoid Price-Gou...
by dragonwriter on Tuesday April 08, 2014 @06:31PM
(#7556435)
No, that's a problem with firms where the voting power is distributed among people whose only shared interest is making money.
The corporate form is pretty much tangential to this, relevant only in that that form is often attractive to widely held (in terms of equity distribution) firms regardless of distribution of authority, and the more widely distributed authority is (which often roughly parallels equity distribution), the more likely that the only shared interest (or at least, the most salient shared interest) is financial profit. But, conceptually, you can get the same issue with big partnerships, LLCs, etc. -- or even small (in number of partners/members) ones and sole proprietorships, where that's all the partners/members/owners care about.
The corporate form is pretty much tangential to this, relevant only in that that form is often attractive to widely held (in terms of equity distribution) firms regardless of distribution of authority, and the more widely distributed authority is (which often roughly parallels equity distribution), the more likely that the only shared interest (or at least, the most salient shared interest) is financial profit. But, conceptually, you can get the same issue with big partnerships, LLCs, etc. -- or even small (in number of partners/members) ones and sole proprietorships, where that's all the partners/members/owners care about.