The financial sector was crucial to the creation of corporations and corporate capitalism When Europeans first entered into the American and other continents, they did not find a system of corporations The same was true of the Ottoman Empire and China Even in Britain, which had a long history of corporate organizations, the early 18th century was the time when corporations came into existence
In the 18th and 19th centuries, the financial sector created corporations and corporate capitalism—both the owners of corporations and their employees
THE FINANCIAL SECTOR CREATED ENTREPRENEURSHIP, NEW TECHNOLOGY, AND CAPITALISM
Entrepreneurship: In the 18th century, the financial sector created the idea of entrepreneurship, which is a person who takes risks to start a business and make a profit
New Technology: The financial sector was crucial to the development of new technology and capitalism Without the financial sector, a company would not be able to borrow money to build factories and it would not be able to get the technology necessary to make the goods it produces
Capitalism: The financial sector was also crucial to the development of capitalism, because the financial sector creates capital, which is a combination of money and property Capital can be used by the company to build factories Without capital, the company would not be able to build the factories
The financial sector also creates new organizations The financial sector is also crucial to the creation of corporations and corporate capitalism
WHAT IS THE DOMINANT ORGANIZATION OF CAPITALISM?
The dominant organization of capitalism is the corporation The corporation is a result of the financial sector's creation of capital Corporations are legal entities that can do business They are given certain rights and privileges by society
The corporation is a dominant organization because it is able to legally buy and sell capital The corporation can buy and own capital It can hire people, who can buy and own capital The corporation is also able to buy and own other corporations This is called vertical integration Corporations are also able to buy and own other companies that specialize in a different product This is called horizontal integration
