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Politics : Foreign Affairs Discussion Group -- Ignore unavailable to you. Want to Upgrade?

To: Hawkmoon who wrote (188019)	6/2/2006 11:31:47 AM
From: Sun Tzu	Respond to of 281500

But under your scenario, the officers of the company could be sued and held responsible for all of the debts of the corporation. This is exactly how it is for your example...unless of course you are IBM or P&G or some other big corporation...but those were not in your example. I've created 2 corporations so far and it is likely that next year I will have a third one if I can get the venture capital for it. If you had actually tried to do what you described, you'd notice that no bank would lend you money unless you signed up your own personal possessions as collateral. Now if you are a well established business, then according to your balance sheet and cash flow, the bank will lend you a money they are certain they can recover. Incidentally, going to the bond market is not much better. There will be restrictive covenants on any major bond sale. The only thing the current set up has done is to make corprate executives irresponsible against the public (but not their financial backers). I am just asking for a level playing field.